The Citizens Standard: A Constitutional Monetary Architecture with Mode-Selectable Inflation Regimes

Solon, Neo (2026): The Citizens Standard: A Constitutional Monetary Architecture with Mode-Selectable Inflation Regimes.

Abstract

This paper proposes the Citizens Standard, a constitutional monetary framework built on a dual-circuit pool architecture and a three-channel issuance mechanism that allows a society to constitutionally select among three operating Modes while preserving a single underlying Model. The framework replaces discretionary central banking with formula-bounded, citizen-anchored monetary creation distributed equally to all verified citizens at issuance.

The architecture defines two pools — a circulating money pool used for wages, prices, and commerce, and a Stable Floor pool of locked, individually owned, total-market index shares (technically termed the Citizen Equity Stake) — and three issuance channels: K1 (citizenship endowment), K2 (growth dividend), and K3 (citizen dividend, active in Mode C only). Mode A targets approximately 1.6 percent annual deflation through minimal indirect circulating expansion (~0.35 percent of M2 annually via capital markets). Mode B targets approximate price stability with mild deflationary drift (~−0.5 percent annually) through K2 issuance calibrated to half the real-growth-matched amount, deliberately conservative to provide a meaningful Stable Floor without runaway accumulation. Mode C targets approximately 2 percent inflation through price-level path targeting, producing a citizen dividend that ramps from approximately $173 per month per citizen at launch to approximately $280 per month at steady-state, with annual calibration and monthly distribution.

• Item Type: MPRA Paper
• Language: English
• Keywords: Monetary Policy, Monetary Reform, Constitutional Economics, Retirement, Seigniorage, Sovereign Currency, Rules-Based, Monetary Policy, Chicago Plan, Central Banking, constitutional monetary system, inflation regimes, monetary architecture, structural inflation, dual‑circuit money, issuance rules
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E02 - Institutions and the Macroeconomy; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E42 - Monetary Systems ; Standards ; Regimes ; Government and the Monetary System ; Payment Systems; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E51 - Money Supply ; Credit ; Money Multipliers; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E59 - Other; H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government; H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions; K - Law and Economics > K1 - Basic Areas of Law > K10 - General; P - Economic Systems > P1 - Capitalist Systems > P16 - Political Economy

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