1. A New Paradigm for Robust Sustainable Progress with Economic Feedback Control The Swedish Sustainable Economy Foundation

2. The Economy an Inherently Unstable System  The natural destabilizing forces in the economy are constantly forcing the system away from a stable equilibrium  These destabilizing forces are the main underlying cause of business cycles, housing bubbles, financial crises and many other harmful instabilities  The current economic paradigm is painfully impotent to fulfill its important task to secure a stable and reliable economic and financial system  As a result of the shortcomings of the current economic paradigm millions of people suffer unjustly and bitter seeds are sown − potentially one day resulting in civil unrest 2 The Swedish Sustainable Economy Foundation

3. What are the basic requirements for a fundamentally stable and sustainable economy? An economic incentive structure harmonizing individual and private interest with common long-term interest An economic incentive structure harmonizing individual and private interest with common long-term interest A basic income, sufficient for the fundamental needs of the individual − food, shelter, security, health care and education A basic income, sufficient for the fundamental needs of the individual − food, shelter, security, health care and education An economic feedback control ensuring a sufficiently high, stable and sustainable demand in the economy − rewarding investment, employment and production An economic feedback control ensuring a sufficiently high, stable and sustainable demand in the economy − rewarding investment, employment and production An economic feedback control stabilizing the value of real assets in the economy and securing the underlying securities in the financial system An economic feedback control stabilizing the value of real assets in the economy and securing the underlying securities in the financial system An economic feedback control discouraging the generation of external effects causing long-term damage and a net loss to society An economic feedback control discouraging the generation of external effects causing long-term damage and a net loss to society 3 The Swedish Sustainable Economy Foundation

4. Necessary societal and economic components A financial system fully secured by real assets in the economy A financial system fully secured by real assets in the economy A feedback control to stabilize the value of the stock of real assets in the economy A feedback control to stabilize the value of the stock of real assets in the economy A fair and balanced rate of interest reflecting the rate of growth of the average labor productivity in the economy A fair and balanced rate of interest reflecting the rate of growth of the average labor productivity in the economy An average real wage reflecting the average labor productivity in the economy An average real wage reflecting the average labor productivity in the economy A free floating currency fundamentally balanced by a continual clearing of the trade deficit − secured through a continual acquisition of a ‘trade deficit currency reserve’ A free floating currency fundamentally balanced by a continual clearing of the trade deficit − secured through a continual acquisition of a ‘trade deficit currency reserve’ A feedback control system with sufficiently high fees on negative externalities − to economize the use of limited natural resources and to reduce the emissions of pollutants A feedback control system with sufficiently high fees on negative externalities − to economize the use of limited natural resources and to reduce the emissions of pollutants A fee reimbursement mechanism securing a regular repayment of an equal share of the income from these fees to every individual A fee reimbursement mechanism securing a regular repayment of an equal share of the income from these fees to every individual 4 The Swedish Sustainable Economy Foundation

5. Some fruits of a sound economic paradigm A stable and secure financial system A stable and secure financial system A stable value of the stock of real assets and real estate A stable value of the stock of real assets and real estate A stable, fair and balanced rate of interest A stable, fair and balanced rate of interest A steady growth of the average real wage A steady growth of the average real wage A steady reduction of emissions of pollutants A steady reduction of emissions of pollutants A steady and regular repayment of the income from control fees A steady and regular repayment of the income from control fees A reliable currency with a unique trade balancing capability A reliable currency with a unique trade balancing capability A robust high rate of employment without inflation problems A robust high rate of employment without inflation problems A robust, fair and efficient pension system A robust, fair and efficient pension system A robust, balanced budget with powerful resources for development A robust, balanced budget with powerful resources for development 5 The Swedish Sustainable Economy Foundation