The Ethics of Money Production

The Ethics of Money Production by Jörg Guido Hülsmann, 2007

We will argue that natural money production can work;
that it has worked wherever it has been tried; and that there
are no tenable technical, economic, legal, moral, or spiritual
reasons to suppress its operation. By contrast, there are a
great number of considerations that prove conclusively the
harmful and evil character of inflation. And in our time
inflation has become persistent and aggravated because various
legal provisions actually protect the monetary institutions
that produce this inflation.

Also:

Central planning or hyperinflation (or some mix between
the two)—this is what the future holds for an economy under
paper money.

Patterns

Brokerage of "double coincidence of wants" and "indivisibility of goods", increasing liquidity (leading to uniform prices), and possibly decreasing number of markets:
# Money (broker of N products and services; N markets instead of N*(N-1))
# Banking (broker of loans and deposits - time market)
# Exchange (broker of participants - money without storage/time market function; futures and options as storage function?)

Joint-stock companies?

http://mises.org/rothbard/mes/chap3a.asp
http://www.econlib.org/library/YPDBooks/Jevons/jvnMME15.html

Force funding - a loop with a positive feedback:
More force obtains more funding, more funding obtains more force
By itself is detrimental (extortion), but can be a vehicle for public benefit.

Marketability/demand for a medium of exchange is another loop with a positive feedback.
# It either originates from a directly useful commodity
# Or via fiat/force
Can protection from force be encoded as tokens, which are "a directly useful commodity"? This would unify two origins of money.

For durable goods, each unit may be sold in toto, or it may be hired out for its services over a certain period of time.
People are both agents with utility preferences AND durable goods, either sold or hired out for their services.
Non-durable goods also perform services, but only once - during their consumption.
Prices of goods are induced by prices of their services.

Prices are determined by beliefs. All agents have limited rationality. Manipulation of beliefs of others may be profitable.

Utility. Elasticity. Substitutability. Complementability.