Back to the main book page Web3 Blockchain Economic Theory (2025e)

The Semantics of Monetary Systems

Renée Menéndez and Viktor Winschel

We present the Monetary Macro Accounting Theory (MoMaT) as the macro economics of supply chains for sharing labour, risk and GDP. According to MoMaT, money is demanded by producers for paying suppliers before getting revenues from sales in labour sharing economies. Money is not primarily useful as a medium of exchange but as a medium of debts and repayments. It neither needs a back up by gold nor an intrinsic value in its paper or digital form. By that macro (quadruple, national) like micro (double) accounting should be functional for any value, price, decision or economic theory. 

MoMaT helps at the micro level to organise labour sharing and debt accounting, at the meso level to share risk by a proper accounting of defaulted investments to avoid unfair bail outs of bad banks and at the macro level to distribute the common product of the GDP, guided by the macro invariances in sums of claims, liabilities, expenditures and incomes arising from the invariances of double accounting. We propose the mathematics of sheaf theory for keeping consistencies between micro and macro accounting, open games for implementing macro and micro automata for accounting with smart (algorithmic) contracts of the Bill of Exchange and homology theory for calculating inconsistencies and resolutions for a decentralised and automated monetary policy. 

We propose (structural) open games as a compositional approach for economic and multi-agent models in monetary policy analysis, for back propagation in econometrics, machine learning and AI and for a category theoretical semantics of a programming language for economics and the trillion dollar industry of supply chain and trade finance.