Currency Systems - How money is created and destroyed and how to bring about monetary/economic stability

We all imagine that we understand why money exists, but given that our understanding of money is coloured by our social conditioning, it is worth revising, in a rigorous and rational way, exactly why money exists.

If we think about it, we ought to realise that money only performs one really practical and fundamental function for us, which is to provide “liquidity”. That is to say, it allows us to represent divisions of the value attributed to things. This function of dividing value is the singular and most important reason for inventing money, it is fundamental because without it, we would be unable to trade a piece of our house for food.  

Also, without this divisibility function, we would not be able to establish a standard means for measuring economic transactions nor keep records of debts and positive accounts. Hence, the fundamental rationale for money is to provide a measure of value so that we can represent value and its divisions.

It turns out that there are only two requirements that need to be met in order to achieve this functionality:

Denominate a common unit of reference of constant value.
 Maintain stable records of the inputs and outputs of the value dividing process. ...
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