1. The Constant Money Supply

Revised November 13, 2013

The Constant Money Supply Construct is the fourth Axiom in Economics.  The first Axiom in Economics is; ALL MONEY IS CREATED THOUGH AND BACKED BY PRODUCTION.  The second Axiom in Economics is; THE PEOPLE WHO CREATE THE PRODUCTION OWN THE PRODUCTS AND THE MONEY RECEIVED FOR THE PRODUCTS WHEN THEY ARE EXCHANGED ON THE OPEN MARKET.  The third Axiom in Economics is; MAINTAIN AN “OPEN MARKET, OPEN TO ALL ON EQUAL TERMS,” NO EXCEPTION.

In this article and subsequent articles on the Constant Money supply, we will discuss the fourth Axiom in Economics.  MAINTAIN A CONSTANT MONEY SUPPLY.  A Constant Money Supply is a money supply that remains the same or unchanging.  The number of money units in circulation remain the same or unchanging.    

A Constant Money Supply standardizes and stabilizes economics systems.  It lends efficiency, stability and prosperity to production, producers, organizations, societies and nations.  A Constant Money Supply gives efficiency and stability to the Banking and Finance industries.  A Constant Money Supply places a rock solid foundation under economic systems, Producers, families, organizations, societies, nations and mankind.  Producers gain confidence and moral strength when the money supply is held constant.  A Constant Money Supply gives predictability and prosperity to Producers.  Incentives to produce and be a Producer are increased and enhanced.

Money is the symbol that represents exchange value.  This exchange value is generated through the production of commodities, trades, goods and services.  When these commodities, trades, goods and services are exchanged on the Open Market, the symbol called money is used to represent the exchange value of the marketed commodities, trades, goods and services.  A Constant Money Supply standardizes and stabilizes this phenomenon of money units representing the value of the produced and marketed commodities, trades, goods and services.

Producer Rewarded Open Market Economic
The Science of Economics
By RP Obrigewitsch
Revised November 13, 2013

 

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Thursday, June 14th, 2012 Constant Money Supply

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