System

Vertical Component

Unit of Account

The development of a monetary system in a specific unit of account is one mode of directing resources towards the centre - to mark contributions from people before they are due and give out uniform receipts, tokens, in return. State money, its payments and collections, is an ongoing politically engineered project.

Historically, system design may blend, with challenges, the ideologies of nominalism and metallism. Money in this context was always a compound of value with a count. Arbitrage opportunities destabilised money supply patterns, principally, when nominal face value diverged from bullion content. Although never simply metallism, bullion content mattered greatly.

Supply shortages bedevilled both medieval and early modern commodity monetary systems. Modern money is a unit of account.

Visit the website ModelSIM.info/introduction for the beginning of a system and experiments.

Coin Creation

View ModelSIM for purpose, accounting and behaviours.

Example modelled coin creation for the United States of America is available. Parameters and output: ModelSIM/modelsim-run-usa/.

Negate System Imbalance

ModelSIM/modelsim-run-exploratory/ explores governance and marginal taxation.

Horizontal Component

Credit Creation

"Credit is always most, when there is most coin to satisfy the same."

Credit creation is an evolving, pro-cyclical, collateral pooling, market-based financial system. Global securitised architectures dominate, consolidated, principally, by monetary instrument forms and accommodations born within the vertical component.