The Relative Theory of Money in Detail

The aim of this text is to present Stéphane Laborde’s relative theory of money (RTM or TRM in French) in an accessible way, without compromising on completeness and rigour. The mathematical part is written as to be accessible to secondary school students. The text starts with a general introduction to the notion of value and presents some basic economic arguments in order to prepare the reader to the concepts developed in the RTM. The theory is then presented in section 3, which makes up the core of the text.