Monetary System Design
Vertical and Horizontal components define one system.
"Credit is always most, when there is most money to satisfy the same."
Hierarchy: Horizontal Component
Private credit creation is an evolving, pro-cyclical, circuit pooling, market-based financial system. Global balance-sheets dominate monetary and social dynamics, ephemeral and enduring, all effected by securitised collateral architectures consolidated, notably, by monetary instrument forms and accommodations born within the vertical component.
The development of a monetary system in a specific unit of account is one mode of directing resources towards the centre - to mark contributions from people before they are due and give out uniform receipts, tokens, in return. State money, its payments and collections, is an ongoing politically engineered project.
Hierarchy: Vertical Component (Metal and a Count)
Historically, system design may blend, with challenges, the ideologies of nominalism and metallism. Money in this context was always a compound of value with a count. Arbitrage opportunities destabilised money supply patterns, principally, when nominal face value diverged from bullion content. Although never simply metallism, bullion content mattered greatly.
Supply shortages bedevilled both medieval and early modern commodity monetary systems.
Hierarchy: Vertical Component (A Unit of Account)
Money is a unit of account. The purpose and function of public taxation and debt instruments, in this system, contrast generally received narratives.