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Monthly Journal: Publishes the methodological and theoretical role of mathematics and mathematical applications underpinning scientific research.

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Open Access Research Article

A new mathematical model driven by the Theory of Complexity applied to the relation between economic variables, money demand and blockchain crypto-coin application

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pp. 337–361Vol. 29Issue 2February 2026DOI: 10.47974/JIM-2186XML
Received:
07 Aug 2024
Published Online:
07 Oct 2025
Article type:
Research Article
Language:
EN
Article no.:
JIM-2186
Pages:
337–361

Abstract

We can say that in the context of Financial Computing, the present article aims to delve into an exploration of the intricate web of relationships among the key economic variables, with a central focus on the concept of money, mapping and connecting different theories through a new definition of velocity of money. In practice, the novelties of the article are based on the following aspects: i) definition of a new concept of velocity of circulation of money based on utility; ii) consequent redefinition of the demand for money; iii)  fil rouge found to connect the various theories based on the above: a) quantity theory of money by Friedman, b) Keynesian theory on Money, c) neoclassical theory on consumers choices, d) mean variance theory by Markowitz, Arrow Pratt approximation, e) Purchasing Power Parity, f) prospect theory by Tversky and Kahneman.  The article attempts to identify a common thread among various models related to the concept of money. The concept of money anyway is intended in a broader sense than usual, including the financial instruments that can be used as a financial reserve of value easily convertible in cash. In practice we intend for money financial wealth. When we write in the article the word money we will intend it in this broader sense. The objective is not to create a comprehensive theory of money in the economic and financial fields, but, starting from this broader concept of money, to identify possible connections between theories that have so far been treated separately. The new concept of the velocity of money circulation, which depends on the ratio between the utility of purchasable goods and services, and the utility of money, helps in establishing some of these connections.  In the article, when ‘goods’ are mentioned, it refers to ‘goods and services.’

Keywords

Subject Classifications

00A69 General Applied Mathematics

References

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