We could use the quantity theory of for money for planning what is going on nationally and internationally. We can have the same prices as before, we could increase the prices or we could decrease the prices.
We do not have to call the central authority in the country we are within to plan and to implement what economic acitivities that are going on. We can be the authority ourselves, and the main point is to know more than any other person, and we can all be positioned as important or not important in a national economy!
Money was a great invention, meaning to reduce the number of the transactions. Economies are just like exchanges, but now you can just pick and choose articles in the markets, and pay for them after you have finished your doings. So, economic planning is about making exchanges, and earlier one had to exchange for instance butter against beer. Hence, there was much more work with getting articles before, and the invention of money made it possible to travel little, and to catch the relevant articles in question by just doing the transactions by using money. And transaction analysis is about examining transactions and what you are doing where and why. The philosophy of the markets today, is that buyers and sellers meet virtual or real, and that they are just using buying efforts to fill their attention and their needs. Philosophy is always about what you aret hinking, feeling and acting, and how you do it, and why you do it. This can be done inside and outside markets. It is not the number of people that constrain what you are doing where, but the ideas and the products used, are the central ways of functioning. A market is a place where we meet actually, or where the digital data is strong. This markets could be periodic markets, as for instance the silk market in Lyon, but it could also be trade that one finds in the most towns and the most cities, for example the stock exchanges, or places with regulated trade with raw materials, metals, currencies and securities. And the ideas and the way of analyze these things are easy. You just determine a value on something, and after that there could be chatting and written contracts made, and the risk management should be to set the prices as there have been before, setting the prices up, or putting the prices down! And what is happening and why, we do not know before it happens, and hence we should use probability analysis to find what is going to occur.
We need the monetary analysis to plan and to implement what the national ecoonomies in all countries are just about. If we use the quantity theory of money, we fix velocity of money and trade, although these figures are moving something from time to time. This means that is the quantity of money is holding constant, nothing is happening with the prices. But it the central bank increase the quantity of money, the prices are going up, and the more the quantity of money is increased, the higher is the inflation, and a high inflation is a disaster for private persons and organizations because they have to pay more money for the same amount of articles than they did before. And we see reactions in the populations around the world, if the prices are too high. And the answer to this, all economies have scarcity, is to reduce the quantity of money to get the prices down. But if we decrease the quantity of money much, we get low prices. That means that you can buy more articles than before for the same amount of money. We must adjust money to values, otherwise there could be too much velocity of money in a national economy! Therefore, many countries have in their transaction history, have connected the quanity of money to a gold standard or a silver standard, or some other things that had and still have value. Accordingly, we cannot print too many money around the world, but there is restrictions on how large the quanity of money could be with all conceivable payment methods. Money is means of payment and means of exchange.
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Sverre Larsen
Kristiansand, Norway
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