The Relative Theory of Money in Detail

By Emmanuel Bultot

For the full text, please view or download The Relative Theory of Money in Detail as a PDF.

Summary

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.

The RTM in brief

Nowadays, money is created by private banks, what gives them power on the economy. The RTM shows on the contrary that if we want to preserve our economic liberties, we must let everyone share the benefits of money creation equally. Since creating money changes its value, the RTM ensures that every past, present and future individual can benefit from the same monetary value during his or her life. The strength of the theory lies in the fact that it accounts for this temporal dimension so that no generation gets an advantage regarding the money it disposes of.

To continue with the full text, please view or download The Relative Theory of Money in Detail as a PDF.


Originally published on Money::ploc on June 12, 2016 under a CC-BY license.

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