Monetary Measurement System of the Economy (MMSE)

Monetary Measurement System of the Economy (MMSE) 1. The Philosophical Nature of Money Money is not a function of the economy. Money consists of the elements of the Reference Measurement System of the economy, which provides quantitative comparison of the objects of economic circulation. Therefore, the nature of money is determined by its role within the Monetary Measurement System, rather than by the functions it performs. 2. Value Value is the result of measurement. It is the numerical evaluation of an object relative to the monetary reference standard within the Monetary Measurement System of the economy. Therefore, value is not an intrinsic property of an object, but the result of a measurement process. 3. Practical Aspect The operation of the Monetary Measurement System gives rise to the observable functions of money, including: • measuring value; • settlement; • payment; • accumulation; • exchange. Therefore, the functions of money are consequences of the operation of the Monetary Measurement System rather than the essence of money itself.