New model challenges traditional monetary theories, offers fresh perspective on economy.
The article explores how money and finance are connected in economic theories, focusing on the relationship between value, capital, and monetary economics. It reviews different approaches like the Stock-Flow Consistent Approach and Modern Monetary Theory. The study proposes a new model that integrates money into the theory of value and capital, providing a method to measure the unit cost of real capital. The findings suggest that traditional approaches to monetary theory and policy may need to be reevaluated in light of this updated analytical perspective.