aggregate marginal production function, or more technically the first derivative of aggregate production function

Trade is only possible if value is subjective. Both sides have to value what they are receiving more that what they are giving up.

thereby currency functions as a derivative currency backed by production

Incorrect, you can reconcile the absolute trading with relative value by comparing baskets of goods in two countries to create foreign exchange market.

Thats fiat economy

You can have deflation based on production with a fiat economy

do we all agree that fiat currencies need to be put to rest?

yes

If iys based on the ability fora goverment to produce, its still reliant on an intanigble thing

End the fed

Yes fiat money is cancer

@My Preferred Pronoun Is Sama it's not about the govt's ability to produce, since we're not nationalizing the corporations per se

nationalization only occurs if a company defies race, we would likely execute any board members who dared to do so as well

You need to trade the currency for gold to end fiat again.

i figured. let's assume the gold standard then going forward. probably more productive. fiat is probably on it's way out in the near future anyway (unless we really want to live in a world of perpetual debt)

gold standard is not the best

Its an example

production based is a better system, but in order to work you need to get your social cohesion in order

hence ethnostates

If corporations have to do what you say or else they will be nationalize, then they are effectively already nationalized.

i kind of need to agree with @halfthink when i say basing a currencies value on production is highly subjective. depends where, when, how, etc.

how is it subjective

More arbitrary than subjective.

production is a physical thing, and we're not basing it purely on *aggregate* production, but the *rate* at which we produce on aggregate as a society

it's an application of modern fischer rate theory to currency with a production spin on it

Production is not a thing till its made

lemmi think. might have jumped the gun

Your making currency on the assumption you can produce something

no in economics, production function is a mathematical representation of the physical process of input to output in producing goods

well every country produces

Thats why everything is fiat

Because of what you said

it's not fiat dude, it's based on a physical system

fiat money is based on arbitrary value judgments created by expectations in interest rate changes

Everything is fiat so there are no restraints on inflation for governments.

formally, fiat money's value is modelled as: risk free rate (treasury bills)+expected rate of return on interest for base rate

Currency from a country is only good if it can produce

brb cooking something

Its based on an assumption

Wait, are you backing your currency with a consumer goods basket?

no, it's backed by the actual marginal aggregate production function