The prevailing global monetary architecture is structurally misaligned with the conditions required for long-term human and ecological flourishing. Rising household indebtedness, speculative credit growth, and the under-provision of universal life necessities have converged to produce chronic instability, widening inequality, and systemic ecological degradation. Conventional monetary policy, grounded in the loanable funds and neutrality of money doctrines, remains ill-equipped to address these challenges. This paper presents the Life-Coherence Monetary Governance Model, an integrated policy framework that synthesizes Life-Value Onto-Axiology (LVOA) as a normative compass, Modern Monetary Theory (MMT) as an operational foundation, and the complementary insights of Steve Keen’s “stock” approach to private debt management and Richard Werner’s “flow” approach to credit allocation.
The model positions the Life-Value Impact Assessment (LVIA) as a binding precondition for all monetary and fiscal actions, embeds a debt-jubilee mechanism targeted at life-necessity debt overhangs, and establishes a credit-guidance taxonomy to channel new lending toward productive, ecologically regenerative uses. By aligning sovereign fiscal capacity with universal life necessities and regulating the stock and flow of credit within real-resource constraints, the framework aims to deliver macroeconomic stability, equitable prosperity, and ecological resilience. The paper outlines the theoretical foundations, policy instruments, institutional arrangements, and evaluation metrics required for effective implementation, and concludes with a call to reorient monetary governance toward the preservation and expansion of life’s carrying capacity.
