shape and equilibrate Monetary Systems Physica A
Transferpotentiale formen und equilibrieren Geldsysteme [German translation, Nov. 2002]
We analyze a monetary system of random money transfer on the basis of double entry bookkeeping. Without boundary
conditions,we do not reach a price equilibrium and violate text-book formulas of economist ’s quantity theory (MV =PQ ).
To match the resulting quantity of money with the model assumption of a constant price, we have to impose boundary
conditions. They either restrict specific transfers globally or impose transfers locally. Both connect through a general
framework of transfer potentials. We show that either restricted or imposed transfers can shape Gaussian, tent-shape
exponential, Boltzmann-exponential, pareto or periodic equilibrium distributions. We derive the master equation and
its general time-dependent approximate solution.An equivalent of quantity theory for random money transfer under
the boundary conditions of transfer potentials is given.
Eine Einführung in das Paper [Dez. 2002] Beispiele für Transferpotentiale [April 2003]
Mechanics submitted and declined by Journal of Finance
(the embarrassingly ignorant referee report can be obtained by email)
Double entry bookkeeping is translated to the momentum exchange of bouncing particles given in space-time graphs.
This translation defines momentum, force and energy of bookkeeping. Bookkeeping-momentum is conserved whereas
bookkeeping-energy is not. Currencies originate from particle pair creations. Liability-particles are equivalent to
asset-particles moving backwards in time. Bookkeeping is axiomatically deconstructed into basic transfer and exchange
graphs. In banking, we find a hidden exchange rate between an account currency and a loan currency. We find zero-sum
game violations in statements of capital, depreciations of tangible assets and single-sided exchanges.