The New Concept of Money: From Record-of-Value (RoV) to Record-of-Entropy (RoE)
9 Pages Posted: 30 Nov 2016
Date Written: November 28, 2016
In this paper, we shall analyse the concept of Money. Presently money is viewed as Record-of-Value i.e. money is used to capture value created in any activity. We start by defining money. Then we discuss the way energy is spent in creating value is measured using money. We also assess the uses of money by viewing it as a Record-of-Value entity. We discuss about the parallel economy which impacts mainstream economy in various ways. Economic Entropy is then defined and discussed.
An equation that relates Economic Entropy, value based money and other economic parameters is proposed. The various advantages of viewing money as a Record-of-Entropy are debated. Finally, the paper concludes as to which concept is best suited to present day and future economic scenarios.
Keywords: Money, Value, Entropy
JEL Classification: C50, C51, C81, C82, D46, E51, P24, P44
Suggested Citation: Suggested Citation