Vol. 25 (Issue 2) pp. 42-62

The thoroughly disaggregated quantity equation

Samo Kavčič *

* Independent Author; Slovenia, kavcic917@gmail.com

Abstract

A calculus called thoroughly disaggregated quantity equation is presented. It apportions each income receiving economic agent the exact amount of currency to perform its role and through this channel all the necessary liquidity for the productive economy is dispensed into circulation. The model utilizes an enhanced mutual credit type of complementary currency and compares it to the narrative of the paradox of monetary profits paying attention to the rigorous assumptions of the latter. The former hinges on the implementation of quantitative control of monetary mass and the restricted environment common to both narratives is shown to be its very enabler. Both narratives are described utilizing stock flow consistent models explained from the perspective of the cash-based accounting. The setup proposed by the enhancements seamlessly isolates mutual credit complementary currency to the realm of the productive exchange and leaves the brunt of the financial exchange to some other currency

Keywords

Degrowth, quantity equation, profit paradox, credit clearing, mutual credit

Article Kavčič

To cite this article: Kavčič, S. (2021) ‘The thoroughly disaggregated quantity equation’, International Journal of Community Currency Research Volume 25 (Issue 2) 42-62; http://www.ijccr.net; ISSN 1325-9547; DOI http://dx.doi.org/10.15133/j.ijccr.2021.0014