We need an internet of impact – here is my proposal for a data science construct that can enable it

The Aggregate Confusion Project at MIT has done a great job of analysing why there is a tremendous divergence between different sources of impact data (sustainability data). They conclude that the biggest contributing factor is that different people fundamentally measure impact in different ways. Furthermore, people organise the various attributes according to different scopes, and assign different weights to each attribute. These three categories of measurement, scope, and weights provide a good starting point for fixing the problem.Read More »

Mega-trending towards zero – what next?

Three long-term economic trends all point towards zero: 1- official interest rates (5,000 years); 2- dividends from stock markets as a proportion of total returns (70 years); and 3- economic growth rates (2,000 years). What are the potential consequences for our economic model if these mega-trends are correct and if they persist – what next?

I wrote this text in 2018 as a thought experiment. It was never published at the time because I was not sure how such a heretical narrative might be beneficial… but now, as the COVID-19 pandemic triggers a global financial calamity, I hope people find it useful as they navigate the crisis and contemplate the systemic changes that may be necessary.Read More »

Triple Entry Bookkeeping & Sumptuous Accounting Principles

Introducing “Triple Entry Bookkeeping” – an accounting methodology that incorporates the non-financial #impact of commercial transactions. It is a way to factor in #externalities, positive or negative, within market prices and asset valuations.

It sets out rules for #ProgrammableMoney that can account for impact (+ & -) and adjusts purchasing power accordingly, for both buyers and sellers i.e. creates market based incentives for doing good.

It offers an arithmetic framework that could support proposals by @YanisVaroufakis for the #Kosmos (a synthetic digital currency modelled on the #Bancor by John Maynard Keynes, originally proposed as a unit of account to track international flows of assets and liabilities).

Read the full paper at www.sumptuousaccounting.org