Thursday, December 10, 2020

Money is liquidity is the commutative property

A Simpler and More Accurate Way to Teach Money to Students

A simpler more accurate way to teach money is to have the teachers review the commutative property of  multiply. 

Money, or liquidity allows distributors to commute the order of shipments, and money counts the amount of commutative property the distributor has.  Walmart does this all the time,  keeping a congested inventory so they can swap the order in which they put stuff on the shelf.

Step one, have economists understand liquidity and prices.  Does JP even know why ratios work in money? If he does then he must understand what a quotient ring is, basic algebra first.  A quotient ring is a stable balance of distribution between deposit and loans, for example. Money lets us measure the round off error in a congested inventory system.

It was a long time ago that I bothered to look at the myth of standard money theory in a text book.  I was astounded at the mathematical illiteracy of the author. I never bothered believing an economist again without a thorough check on the assumptions, mostly bogus.

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