ABSTRACT
This chapter introduces some of the basic concepts of the theory of money, including its nature and function, the processes through which money is generated and distributed, and the interaction of the dynamics of money with the dynamics of the real economy. The creation and allocation of money solve the engineering problem of making available to individuals and entities the tools necessary to exchange the ownership of goods and services and to store purchasing power for the deferred exchange of ownership. Designing the process of the creation and distribution of money is both an engineering problem and a problem of political economy. The relationship between money and market prices is complex. Economic theory posits that prices are determined by the intersection of supply and demand. Religious organizations of course need money to buy goods and services from the outside world.
