ABSTRACT
Price Theory of Monies labels differ fundamentally. The Price Theory of Monies recognizes tangibility of each fiat money. Aggregation across distinct commodity monies is one problem, but a second problem concerns aggregation of tangible and intangible monies. Aggregation problems have persisted for both tangible and intangible monies throughout centuries of evolution of the nature of monies, as well as interactions with non-monetary items. The six monetary functions over five millennia are unit of accounting, medium of exchange, store of value, standard of value, link-money, and measure of relative values. While conventional money supply and money demand are couched in Inventory Supply and Inventory Demand terms, mainstream labeling of axes contrasts sharply with labeling under the Price Theory of Monies. Monies should be conceptually disaggregated to the maximum extent possible. Doing so implies jettisoning the basic microeconomics–macroeconomics dichotomy. Conventional isolation of monetary aggregates within a macroeconomics silo – divorced from disaggregated ‘real goods’ within a microeconomics silo – is unnecessary.
