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Keene's suggestion is basically a flat universal payment, if you have debt it must be used to pay down debt first.

http://www.debtdeflation.com/blogs/manifesto/

I don't really get how it's supposed to work though. What would ensure it increased consumption and productive investment, rather than just further fuelling asset price inflation.

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It's supposed to work because Keene's models suggest it would work: the failure in the economy is not one of underproduction (we have dramatic overcapacity and, if anything, overproduction) but rather a lack of monetary power in the broader consumers hands, caused by the burden of private debt.

It's unorthodox, but I buy it. Or, at least, I'd rather try his solution than keep trying the failed policies of both the orthodox and keynesians.

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