TrueValueMetrics ... Impact Accounting for the 21st Century


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Date: 2024-11-22 Page is: DBtxt001.php L0700-UA-EC-PC-PHYSICAL-CAPITAL

UNIT OF ACCOUNT MONEY THE UNIT OF ACCOUNT FOR THE FINANCIAL ECONOMY
MONEY WEALTH / MONETIZED VALUE Money / Profit growth / GDP growth / Stock Prices / Cost push inflation / Wages chasing prices

	PURPOSE OF MONEY Everyone is familiar with money as a unit of account. Money serves two purposes: (1) as a medium of exchange for the transaction; and (2) as a store of value. Money and double entry accounting was a very powerful system for accountability when the economy was relatively small and impact on society and the environment was ignored without much consequence. But the 21st century is different. The population of the world is at record levels, and the degradation of the environment in many different ways has become consequential. There is a need now for UNITS OF ACCOUNT that are relevent for ALL the impacts associated with economic transactions. The money measure needs to be better understood. It is common to use a reference currency like the US dollar, but local currency also matters, and there may be funding currency as well. Besides the US$, other reference currencies might be the Euro, Japanese Yen or Chinese Yuan
	WHY IS THE VALUE OF A DOLLAR DIMINISHING?

More about FINANCIAL CAPITAL

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TrueValueMetrics (TVM) is an Open Source / Open Knowledge initiative. It has been funded by family and friends. TVM is a 'big idea' that has the potential to be a game changer. The goal is for it to remain an open access initiative.

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