Technological Change as a Monetary Phenomenon

This article attempts to study the function of monetary systems as networks of communication, which facilitate the channelling of social effort in the presence of exogenous conditions. A model of monetary system is being proposed, where monetary balances are algorithms of response, built up in the presence of uncertainty induced by technological change. Empirical research brought in support to that model demonstrates a strong and negative correlation between the velocity of money and the share of aggregate depreciation in current output, with intriguing links to exogenous mechanisms of energy absorption in the local social system.

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