Journal of Business & Financial Affairs

The Physical Aspect of How Monetary Policy Functions

Abstract

Rongqing Dai

This writing provides a philosophical discussion on the effect of monetary policy through the metaphysical analysis of money and its circulation. Unlike most writings on this subject, this writing focuses on the circulation of money at its face value instead of its buying power or market value, which is under the influence of conservation law. The goal of this writing is to lay out some basics for metaphysical analysis upon the physical nature of money circulation.