Passive BIBO Currency Distinguishing Claims

Copyright Passive BIBO Currency Project 2013

Editors: Marc Gauvin, Sergio Dominguez.
Reviewed and approved by the Passive BIBO Currency Board.

The Passive BIBO Currency project is responsable for the following list of affirmations that serve to scientifically define and delimit the generic notion of "money"/"currency" or any other means of representation of value requiring the annotation and communication of records of stable measures of the value attributed to unique instances of goods and services. 

  1. Money is an output of a system that can be represented by “Discrete Linear Time Invariant (LTI)” processes and therefore the stability of such system's can be affirmed by the BIBO criteria (Bounded Input Bounded Output).

  2. Money has the function of measure for which it is required to satisfy not only BIBO criteria but it must also be Passive.

  3. Money cannot be both a measure and a scarce commodity, given that these definitions are mutually exclusive.   Logically, money cannot be scarce given that it is nothing than the measure of the value of goods and services in transactions.

  4. There is no need for money to be a physical object given that it is a logical entity, its only rational function being to measure and record value.

  5. According to the “Stable Currency Unit Theorem” and for there to be stability in measure it is sufficient that:   A) All units arise out of transactions of goods and services.  B) All transactions are Passive BIBO processes.  Nothing else matters.

  6. Previous “circulation” of money is not a requirement for the realisation of transactions but rather money is a subsequent result or product of transactions. Such that the dependence over previous “supply” and “circulation” is as delirious as the transfer of a score between athletes.

  7. The stability of money does not have to do with whether or not debts can or cannot be paid, but rather it has to do with the rules that govern and define transactions.   For example, the unbounded growth of debt as a function of time.   Another example is the increase of value of an obligatory unit as a function of its relative inaccessibility or scarcity, given that a withdrawal from “circulation” of “scarce units" (technically an oxymoron) would result in an unbounded increase of value in the unit as a function of that relative scarcity.  For which it becomes clear that the value of money must not be subject to the law of supply and demand because it is not a commodity but rather it is a logical entity by definition.

  8. The circulation of the support of an account entry (cash) does not alter the locality and value relation with the corresponding good/service the value of which the account entry is a measure of and if it does alter it, then the original measure must also be altered.

  9. The agent that implements a money system, public versus private, is irrelevant to the issue of credibility of the money system mechanism and function, which is entirely dependent on the practical nature of and adherence to logical and mathematical definition.

  10. Passive money systems cannot compete with non passive systems for a common resource base.  The latter will starve the former.


Bounded: Any function f(t) where there exists some value B > 0 such that |f(t)| ≤ B t .

BIBO stability: A system is said to be BIBO Stable when both input and output functions are Bounded. For continuous Linear Time Invariant systems, a system is considered BIBO Stable if the input response signal is absolutely integrable.

Linear System: A system is considered linear, if it satisfies the property of superposition and scaling.   Given a linear operator H {x(t)} with inputs x1(t) and x2(t) and corresponding outputs y1(t) = H {x(t1)} and y2(t) = H {x(t2)}, then for any scalars α and β, H {αx1(t) + βx2(t)} = αy1(t) + βy2(t)}.

Time Invariant: A system in which all quantities governing the system's behaviour remain constant with time, so that the system's response to a given input does not depend on the time it is applied. If the input signal x(t) produces an output y(t) then any time shifted input, x(t + ∂), results in a time-shifted output y(t + ∂).

Passive: A system or process where output input.


Additional information