Additional Comment

This is an additional comment on "Logic of New Monetary and Tax Policy" published on Tuesday, August 14, 2007 on this blog.

1. To the extreme, the Central Bank are obliged to pay for the bubble, because the bankrupted economic units are unable to return write-offs as tax. In that case debts might exceed assets on the substantial B/S of the Central Bank. But it might be permitted to put the presuppossion that the Central Bank never bankrupt, by nature, even in this situiation, in order to overcome the burst of bubble.
And, in case the economy in deflationary spiral, with expectation for inflation entirely disappeared, the Central Bank is given a great chance to put new system in operation.
Or, even if inflationary expectation exists, the system enables the Central Bank to on one hand raise benchmark rate to cope with inflationary expectation, on the other hand restructuring the inflicted balance sheet of economic units.
The system is more realistic than helicopter-money under liquidity-trap.

2. Every write-off must be traced, by centralaized function. So every write-off must be executed through this function, which might exist on the internet.

3. The traced write-offs must be distinguished from high-powered money.

4. For cross-border
(1)AB1 is calculated for each non-residential economic unit, with the only cause from specific asset depreciation(nowadays it is real estate situated in the residential country).
(2)But the economic unit that will be written-off should next write-off in the same booked currency.
(3)In case surplusses of the written-off exists on the economic uint, it's taxed and absorbed by the foreign government and handed over to the soverign government of the currency, based on treaty.