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hort. ? Each member of pair has a cash account made proportional to some economic index (such as GDP) by reallocating across accounts ? Each Macro pays dividends equal to interest on their cash account (NAV). ? Price of Macro should in equilibrium reflect market valuation of claim on cash flow Declaration of Nuevo Le243。n Advocates GDPIndexed Debt ? Summit of Americas, Monterrey Mexico, January 2021 ? Signed by 34 Western Hemisphere heads of state ? Tying debt of countries to countries’ GDPs helps insulate their economies from macroeconomic fluctuations ? Subject of GDPLinked Debt will be on agenda of international conferences Livelihood Insurance ? Replaces life insurance in dealing with largest risks ? Longterm policies based on occupational indexes ? Repeated measures occupational indexes: Robert Shiller and Ryan Schneider Rev. Ine and Wealth 1998 ? Powerful impact on conservatism in life’s decisions, makes for more risk taking Home Equity Insurance ? Risks to values of homes greater than risks by fire ? Oak Park Illinois, 1977 ? Chicago Home Equity Assurance Program 1988 ? Indexbased insurance, Shiller and Weiss 1994 ? YaleSyracuseNRC program, 2021 Radical Financial Innovation ? Innovation that extends the principles of insurance, diversification, hedging into new directions, covering risks that had not been managed before ? Innovation that democratizes risk management, that permits it to be used for the benefit of everyone. ? Can cover the big risks that create major inequality in society A Model of Radical Financial Innovation ? Risk manifestation ? Experimentation ? Robust reframing ? Involvement of existing institutions to promote change