- How much money should be?
- How did the money?
- Who and how to create money?
- Who controls the money?
- What is the basis of the value of money?
Simple and eternal questions. At the same time complicated and requiring solutions now. Such a philosophical category. Dependence of quantity and quality and eternity and momentary.
QUANTITY THEORY OF MONEY
The Quantity Theory of Money describes the relationship between the money supply, velocity of money, price level and output in the economy. The supply of money multiplied by the velocity is equal to the
nominal output in the economy. If we assume that the velocity is equal to one and take the natural logarithm of this expression we ge the following derivation
M-Money supply, V-velocity of money circulation, P-price level, Y– quantity of goods and services transaction
The logarithmic expression of this equation captures the relationship between the growth of money and prices and income in the economy.
As you know, the public and social life is very difficult to describe with formulas. At different times and in different countries, the value of money is based on different values.
I will not list everything, I will only say the main ones – gold, oil, energy and other material values. No less important is the state power and the power of authority.
Absolute monopoly in the creation of money by central banks only It is a mistake. Which led to the development of the economy and the absolute unrealistic debt of all COUNTRIES. Debt amounts are -199 trillion US dollars.
In fact, we have built a debt economy. One thing is obvious, the global economy has approached that of the developmental stage, when it can not function properly.
Oxfam’s report is just the latest evidence that inequality has reached shocking extremes, and continues to grow. It is time for the global leaders of modern capitalism, in addition to our politicians, to work to change the system to make it more inclusive, more equitable and more sustainable.
Oxfam made headlines at Davos last year with the revelation that the 85 richest people on the planet have the same wealth as the poorest 50 percent (3.5 billion people).
The existing disproportions and shortcomings can not be solved by traditional methods, and the classical adherence to the theory of market liberalism. We need fundamental reforms of monetary policy and money.
Our MECHANISM proposed by us suggests another way of introducing money into the economy, another mechanism of monetary policy.
Our Project pursues elimination of this and other flaws, which will enable us to use cryptocurrency for monetary policy for the state at large.