Financial Viscosity Augmentation as a Macro-Economic Stabilizer
Thierry De Mees
Keywords: Location (finance), time (finance), premium (finance), viscosity (finance)
The steadily increasing volatility of the financial markets, due to the generalization of information and computerization, will end up to catastrophic financial scenarios in times of crisis. In this paper, a fundamental strategy is discussed, which is a novel way to hold back such scenarios. It is based upon a strong augmentation of the financial viscosity of transactions. Different kinds of viscosity augmentation are discussed, and the ways how they can be applied by governments.
