The Value-Driven Monetary Expansion Model:
A New Approach to Sustainable Economic Growth
Ian Y.H. Chua
1, 2, 3, 4
27 February 2025
Abstract
The traditional approach to monetary policy assumes that money must be conserved and
that excessive printing leads to ination and economic instability. However, this paper
introduces the Value-Driven Monetary Expansion Model (VDME), which the author
proposes as a paradigm where money creation should be directly tied to real asset
development and economic productivity. In contrast to restrictive economic policies that
stie global growth, the U.S. should adopt an approach that facilitates targeted monetary
expansion, ensuring that newly created capital leads to tangible improvements in
infrastructure, employment, and societal well-being. Furthermore, excessive constraints
on global economic development through nancial dominance may ultimately backre,
leading to geopolitical instability and reduced economic inuence.
Introduction
Economic orthodoxy has long held that excessive money printing results in ination and
nancial collapse. However, history has shown that monetary expansion, when
strategically aligned with productive endeavors, can result in sustainable growth. The
United States has an opportunity to shift from a scarcity-based nancial model to a
Value-Driven Monetary Expansion approach, where money creation is directly linked to
real economic value.
This paper argues that rather than employing restrictive monetary policies that constrain
the global economy—often through articial debt ceilings, trade wars, or nancial
coercion—the U.S. should pivot toward a system where newly issued currency is
strategically invested in national infrastructure, technological innovation, and societal
welfare. This approach would not only enhance domestic economic resilience but also
reinforce global economic stability.
Theoretical Framework: Value-Driven Monetary Expansion (VDME)
The VDME Model proposes that:
1. Money is not a nite resource – Unlike physical commodities, money is a tool
that enables economic transactions. If managed wisely, its expansion can be
benecial rather than destructive.
2. Tying monetary expansion to tangible assets prevents inationary collapse –
When money is printed without productivity increases, ination occurs.
However, if the newly created money is tied to real infrastructure, housing, and
public services, it results in increased national wealth rather than currency
devaluation.
3. Employment growth osets ination – A major criticism of monetary
expansion is ination. However, when new money is used to create jobs in
sectors that generate goods and services, the increased supply of products
counterbalances price hikes.
4. Government debt need not be constrained under articial limits – The debt-
to-GDP ratio should be analyzed dynamically rather than rigidly. If national
borrowing results in real asset accumulation that enhances economic eiciency,
long-term productivity gains justify temporary scal expansion.
Case Study: Housing as a Model for VDME
Consider the persistent issue of homelessness. The U.S. government claims a lack of
funds for large-scale housing initiatives, yet it has the ability to print money to fund other
ventures, such as military expansion or corporate bailouts. Under VDME, the government
could:
1. Print new money explicitly designated for public housing development.
2. Call for tenders and contract private rms to build sustainable, aordable
housing.
3. Stimulate job creation in construction, manufacturing, and related sectors.
4. Alleviate homelessness, reduce social welfare expenditures, and improve overall
economic productivity by stabilizing at-risk populations.
5. Ensure that the money created translates into tangible national assets rather
than speculative nancial markets.
This targeted monetary expansion approach ensures that ination is mitigated by the
simultaneous creation of productive assets and workforce participation.
The Risks of Economic Restriction and Financial Coercion
For decades, the U.S. has used its nancial dominance to enforce global economic
restrictions through mechanisms such as IMF-imposed austerity, trade sanctions, and
interest rate manipulation. While these strategies may oer short-term benets in
maintaining dollar hegemony, they risk long-term global retaliation, economic
stagnation, and de-dollarization. By shifting toward VDME, the U.S. can foster
international goodwill while maintaining economic leadership through productive
inuence rather than coercion.
Conclusion and Policy Recommendations
To implement VDME eectively, the U.S. must:
1. Reassess its monetary policy framework to prioritize real asset creation over
speculative nancial markets.
2. Engage in proactive infrastructure investment by funding housing, renewable
energy, and technological advancements with newly created capital.
3. Reduce dependency on economic restrictions that provoke global economic
instability and geopolitical pushback.
4. Incentivize job creation and productivity to ensure that increased money
supply does not lead to inationary pressures.
By adopting a Value-Driven Monetary Expansion Model, the U.S. can enhance its
economic strength, improve global stability, and create a system where monetary growth
is tied directly to tangible, sustainable national wealth. This paradigm shift will not only
benet the U.S. but also promote a more equitable global economic order.
Acknowledgments
This paper was developed with the assistance of ChatGPT 4.0, which provided insights and renements in the
articulation of philosophical and scientic concepts.
1
Founder/CEO, ACE-Learning Systems Pte Ltd.
2
M.Eng. Candidate, Texas Tech University, Lubbock, TX.
3
M.S. (Anatomical Sciences Education) Candidate, University of Florida College of Medicine, Gainesville, FL.
4
M.S. (Medical Physiology) Candidate, Case Western Reserve University School of Medicine, Cleveland, OH.
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