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In stagnant society while there are no alteration in economic rationality national product which represents an offer (PQ) is equal to demand which is the product of the quantity of money in circulation (M) and the velocity of money circulation (V): PQ = MV ; P = price level = const. ; Q = quantity of products ; In dynamic society while the economic rationality is rising national product i.e. offer (PQ) is augmented (for PdQ ) and demand (MV) is diminished (for -MdV ) on account of diminishing money circulation velocity (-dV) and therefore it is necessary an additional quantity of money in circulation for equalizing offer and demand (dM) : 
The additional quantity of money in circulation (dM) is determined by coefficient k: 
Coefficient k is the rate of growth of quantity of money in circulation which is necessary for realizing the greater production by the retarded velocity of money circulation.
The additional quantity of money in circulation (dM) as a determined rate of the quantity of money in circulation (kM) must be emitted as a non-credit money, i.e. donation for children and pensioners.
The first part of this money  realizes the augmenting of production and ends as a profit of producers, and the second part of this money  compensates the retarded velocity of money circulation (as a consumers` surplus).
The sum of incomes in a society is composed by incomes which are incorporated in costs, and by incomes which are got from the emission of non-credit money. Thus, the sum of incomes is greater than the sum of costs. Today, money is credit money Because of retarding the money circulation velocity, credits can not be given back without credit-monetary expansion which creates inflation. The sketched model of emitting of non-credit money guaranties stable and rapid development without inflation and deflation. It is the model of the new world economic order. Stojan Nenadović Nema komentara na ovaj tekst |
