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The fourfold relation between the essence of money, inflation, bubbles and debt—A theoretical macrofounded analysis
Author(s) -
Beretta Edoardo
Publication year - 2020
Publication title -
economic notes
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.274
H-Index - 19
eISSN - 1468-0300
pISSN - 0391-5026
DOI - 10.1111/ecno.12166
Subject(s) - economics , inflation (cosmology) , debt , monetary economics , fiat money , relation (database) , keynesian economics , value (mathematics) , money creation , cryptocurrency , time value of money , endogenous money , macroeconomics , intrinsic value (animal ethics) , monetary policy , finance , central bank , law , mathematics , statistics , physics , computer security , database , theoretical physics , computer science , political science
The paper makes an unprecedented claim by identifying a significant relationship between money's (immaterial and intrinsic‐worth‐detached) essence and the measurement of inflation rates, on the one hand, and bubbles and private/public indebtedness, on the other hand. The inflationary potential of cryptocurrencies—among others: xenocurrencies and special drawing rights—is also analysed. Another added value is the consistently macroeconomic approach, which starts from the structural and interconnected mechanisms and then explains economic‐financial crises and their increasingly common features.