|
|
@current level
About Money
Credit Conversion
Mitchell-Innes
@sibling files
Index
Backing of money
Money primitives
On monetary communism
Helicopter money: the question not asked
Government fiat: how much is too much?
Can interest ever be repaid?
Debunking the three functions of money
|
|
Home > Money and Credit Conversion > About Money > Money primitives
Money primitives
The three “primitive” monetary operations are the following:
Issuance — this is when a money token (in whatever form) is transferred from its issuer to another party, it is the moment when money is created. Transfer — when money is transferred between two parties, none of which is its issuer. Cancellation (also called money destruction or money deletion) — when the money token returns to the issuer, thereby ceasing to be money, but possibly retaining some intrinsic value, as with a coin.
To that we can add a fourth operation, which is the exchange of tokens:
- Exchange — a simultaneous transfer of money between two parties.
That is all there is, and there is no mystery in it.
________________________ /money/money-intro/primitives.html
|
