Annie says her main policy recommendation - increase the required reserve ratio at banks, either all or some, with transparency - will bring prices down.

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It will also bring wages down, but a woman I met in the grocery store had no problem with that - it's what your paycheck will buy, not what its monetary value is!​​ And this is what the Fed and other policymakers need to debate - how will declining prices and wages affect the system? Annie says that this policy will even up inequities around the world. 

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Brief summary: "Easy money" policy skews local, national, and global economic systems in favor of knowledge industries at the expense of personal service industries. Debate over free markets versus government or autocratic control ignores this situation and thereby allows it to get worse. ​

 

In particular, one size does not fit all. We need a different approach from the pursuit of "efficiency" in situations that DO NOT benefit from doing things more rapidly and less expensively.​ Annie calls the two sectors in her model money-magnet industries, and resource-losing industries. [That's industries, not countries, not businesses.] Each sector benefits more, or less, from global economic policies, because each responds differently to global financial environments. We might wish to treat them differently - different market-based policies might be appropriate for each - just as different human beings, facing different environments, benefit differently from them.

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Annie says that global economic policies have benefited money-magnet industries at the expense of resource-losing industries, all over the world, and the challenge has reached crisis point.​ It is very hard to believe that this occurred deliberately, because it may be found all over the world. Annie thinks Governments have been at loggerheads because they don't know what to do, not because they intend to be unkind. We need to talk over how it happened (is Annie correct?) and what to do about it, going forward.

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Annie is in good company - Swedish Nobel laureate Gunnar Myrdal said something similar! But we are wiser now and it's time to revisit what was cutting edge many years ago. Paul Romer received a Nobel Prize for his pioneering work in modeling technological change. Paul Krugman pioneered "The New Economic Geography" and won a Nobel too. W. Arthur Lewis of the University of Manchester made a much earlier argument along similar lines. He won a Nobel too.

 

Annie's model contains elements of all of these ideas. However, Annie's model also updates all of these ideas and conventions, based on her own research findings which imply that the rate of migration is motivated by the rate at which jobs open, rather than by the wage to labor, although of course the two are related.