Glossary of Concepts
 

New Concepts [ M - Z ]


Materialization of economic time: an economic procedure through which economic time is converted, transformed and/or expressed in present economic goods, without which time has no economic entity.

Monetary [currency] crisis with credit: a crisis arising when irregular credits are adopted as currency, which derives in direct or indirect improper appropriation of wealth. Credit monetary [currency] crisis are typical of irregular currencies.

Monetary [currency] crisis with money:
crisis that are the result of money becoming dearer because of the increase in interpersonal exchanges. This led to Keynes’ famous reference to the “barbarous relic”.

Monetary system, Irregular: economic system that adopts irregular credit as currency.

Monetary [currency] system, Regular: the economic system that adopts money and/or regular credit as currency.

Money: present economic good used as currency.

Paradox of interest: theories that sustain the need to increase the price of a good to make it scarcer. The "paradox" is the result of pretending to solve the economic problem of shortage promoting greater shortage, i.e. trying to put out a fire with fuel. We call it the "interest" paradox, because the most common practical expression is raising interest rates.

Partial wealth equation: the equation of current economic theories operating with the equation Y = C + I and Y = S + I, from where the erroneous conclusion S = I. This name arises from comparing it with the total or complete wealth equation, used in accounting.

Price: exchange of quantities of different economic goods.

Price, Interpersonal: price generated by interpersonal exchanges.

Price, Intrapersonal: the price generated by an economic agent in time.

Price, monetary [currency]: the prices expressed in currency.

Prices, absolute: prices that do not arise from the exchange of quantities of different economic goods, i.e. prices that by definition do not exist.

Prices, future: the prices that will form in the future.

Prices, past: the prices obtained in the past. They generally orient economic calculation until new ones appear.

Prices, present: arising in each spatio-temporal present instant, obviously, their duration ephemeral.

Prices, relative: see price.

Primary biunivocal relation of the economy: "economic good-owner", is the basic cell of the economy, in terms of the main requisite for the existence of economic entities. It means there are no economic goods without an owner, or an owner without economic goods. Accounting reflects this primitive term par excellence of the economy with its accounting equation Assets = Wealth.

Real credit: credit with initial materialization.

Regular credit: credit in which quality and quantity of the present economic goods in which it must be cancelled along with maturity and precise identification of the parts involved are established. In other words, initial and final materialization are clearly defined, along with maturity and the intervening economic agents. It is the most legitimate expression of the essence of credit in terms of compliance with commitments.

Savings: A set of present economic goods not consumed. See the similitude with wealth, since it is the same from another point of view.

Situation, Economic: the capacity of economic agent for generating wealth that is his property; the creation of new biunivocal relations "economic goods-owner".

Situation, Financial: the capacity of an economic agent to cancel debts according to maturity, amounts and final materialization.

Situation, Patrimony: the asset-debit relation of an economic agent; from another point of view it shows which part of the economic goods an economic agent has at his disposal are his and which belong to third parties.

The dangerous credit chain: a consequence of accepting cancellation of credits with irregular credits and of the theoretical confusion of assimilating money and credit. The typical case is considering a credit cancelled with paper currency or a fiduciary instrument.

The equilibrium solution: a scheme pretending to balance the real and the monetary [currency] or virtual worlds, individually or as a group.

Theory of Economic Relativity (TER): theory that states that economic time materializes inevitably in present economic goods.

Total demand: demand that includes all existing economic goods, a concept deriving from the biunivocal relation "economic good-owner" (see concept). Demand of economic goods is composed of all existent economic goods, be they needs -demands- for consumption, investment, storage, commerce, liquidity, etc, what is known in accounting as an asset, equivalent to wealth in economics.

Total or complete wealth equation: is the biunivocal relation "economic good-owner" of an economic agent or group of agents. In accounting terms, we can say it is the equation of Assets = Wealth, where credits express the exposure of present wealth to the future. This term arises from comparing it with the economic equation of current theories operating with the equation Y = C + I and Y = S + I, from where the erroneous conclusion S = I.

Unknown debtor syndrome: the result of an irregular credit that does not include a precise indication of the economic agent responsible for canceling it.

Unknown family syndrome: the result of the lack of a duly identified economic agent responsible for an economic invalid.

Value of economic goods, objective: the magnitude incorporated in an economic good to satisfy needs. It is the antithesis of subjective value, in which the value is assigned by the agent demanding the object. The human being that has the need assigns an ordinal value to the economic good; otherwise, it has no value.

Value of economic goods, subjective: the ordinal magnitude of satisfaction of needs assigned by a human being to an economic good. It is the antithesis of objective value, because value is assigned by the offering agent as incorporated in the economic good, considering it has a value of its own, with no need for subjective valuation by a human being.

Virtual credit: credit with no initial materialization. This means there is no credit.

Virtual money: a metaphor referring to money that is not such because it is not a present economic good. It contradicts the definition of money, money that is not money. This concept is useful for showing the difference between money and credit.

Wealth: the set of all present economic goods. We could define future and past wealth just as we did with economic goods.

 

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