The 'principle of invariance' in currency systems: A comment on Caianiello et al.

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Abstract

In an often-cited article in this journal, Caianiello et al. (1982. International Journal of General Systems, 8 (2), 81-92) formulate a 'principle of invariance' for currency systems. They build on this principle to explain the distribution of the coins and banknotes in circulation over the different denominations, and analyse how a currency system adjusts to inflation. This paper shows that Caianiello et al.'s distribution law is flawed because the principle of invariance is false.

Original languageEnglish
Pages (from-to)215-223
Number of pages9
JournalInternational Journal of General Systems
Volume41
Issue number3
DOIs
Publication statusPublished - 1 Apr 2012

Keywords

  • Currency denominations
  • Hierarchical selforganizing systems
  • Principle of invariance
  • Refining transformations

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