If you want to end fed controlled interest rates you would either need to abolish cash and replace it with cheques or introduce a demurrage currency as cash. Cash acts as a perpetual bond with a guaranteed 0% interest rate. If there is deflation then the nominal interest rate needs to be negative so that the real interest rate is correct again. If you can't express negative nominal interest you will have to run away from deflation aka permanently issue more money.
This is pretty much universal, even DAI (algorithmic stablecoin backed via deposited Ethereum, etc) has this problem. When DAI trades above the peg, the only answer is create more DAI and sell.
There is RAI where the answer to RAI being above the peg is to just lower the redemption rate.
The obvious answer then would be to introduce an optional dollar that has an interest rate built into it that can be negative. It doesn't have to replace every existing dollar bill, it just has to exist and in case of austerity or a recession the Fed will try to not increase the number of 0% dollars in circulation. This will make regular dollar bills trade above their face value meaning people are less likely to transact with 0% cash and instead electronic payments and the negative interest dollar will continue doing their job.
The money in Wörgl was named emergency money (Notgeld) for a reason. Fight the depression with a higher velocity of money, not more money.
This is pretty much universal, even DAI (algorithmic stablecoin backed via deposited Ethereum, etc) has this problem. When DAI trades above the peg, the only answer is create more DAI and sell.
There is RAI where the answer to RAI being above the peg is to just lower the redemption rate.
The obvious answer then would be to introduce an optional dollar that has an interest rate built into it that can be negative. It doesn't have to replace every existing dollar bill, it just has to exist and in case of austerity or a recession the Fed will try to not increase the number of 0% dollars in circulation. This will make regular dollar bills trade above their face value meaning people are less likely to transact with 0% cash and instead electronic payments and the negative interest dollar will continue doing their job.
The money in Wörgl was named emergency money (Notgeld) for a reason. Fight the depression with a higher velocity of money, not more money.