Power theory of exchange and money

Artikel

Modern exchange theories model a large market, but do not explain single exchanges. This paper considers the phenomenon of single exchange and formulates the general exchange problem in the form of a system of two equations, subjective and objective. Subjective equilibrium is given by the Walras-Jevons marginal utility equation. Objective equilibrium equations by Walras and Jevons are averaged over all transactions in the market and can only give a rough general picture without explaining the specific price of an individual exchange. An exchange micro-condition must be found that, when averaged, will give the Walras market equilibrium macro-condition. The study of the internal structure of exchange leads to the need to consider power. The concept of generalized power is introduced. It is generalized power that serves as the primary comparable and measurable objective basis of exchange. The power theory of exchange provides the objective price-equation. It is demonstrated that money is a measure of generalized power in exchange and a certification of generalized power in subsequent exchanges. This methodology is based on an interdisciplinary analysis of an abstract exchange model in the form of a system of equations. The proposed theory is able to uniformly explain any exchange, including a single one, which is impossible with the existing theories of exchange.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economies ; ISSN: 2227-7099 ; Volume: 10 ; Year: 2022 ; Issue: 1 ; Pages: 1-16 ; Basel: MDPI

Classification and Topics

• Classification: Wirtschaft ; General Economics: General ; Relation of Economics to Social Values ; Sociology of Economics ; Microeconomics: General ; Market Structure, Pricing, and Design: Perfect Competition ; Value Theory ; Exchange and Production Economies ; Money and Interest Rates: General ; Financial Economics: General ; Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
• Subject: exchange ; exchange theory ; money ; money theory ; power

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stefanov, Yaroslav
• Event: Veröffentlichung
• (who): MDPI
• (where): Basel
• (when): 2022

Further information

• DOI: doi:10.3390/economies10010024
• Handle: http://hdl.handle.net/10419/257387
• Last update: 10.03.2025, 11:44 AM CET