Balances Mechanics

The Balances Mechanics (German: Saldenmechanik) (from balances of bookkeeping respectively the credit system and mechanics to characterize the strict universal identities) is a work and mean of economics, comparable with . Statements of Balances Mechanics are not based on assumptions and preconditions of a model but are of trivial arithmetric nature, usually shaped as equation and universal without restrictions. Balances Mechanics were developed by Wolfgang Stützel and published in his books Paradoxa der Geld- und Konkurrenzwirtschaft (Paradoxes of Competition-Based Monetary Economies) and Volkswirtschaftliche Saldenmechanik (Balances Mechanics of Economics).

Balances Mechanics deals with interrelations, the validity of which – contrary to most economics postulates – does not depend on assumptions about human behaviour. Balances Mechanics allows to put these frequently necessary assumptions of economic theories and postulates onto a logic fundament of overall economics thinking (Size Mechanics). Previously false conclusions in pricing theory, theory of money, and trade cycle theory, resulting from single economy thinking (partial sentence) are overcome by a correct micro foundation and introduction of the real existing credit economy to the modeling (global sentence, size mechanics/relational sentence).

For example, from the view of the single economy experience it seems to be absolutely logical that rising expenses of a national economy go along with a rising need for medium of exchange in terms of quantity theory. From the view of Balances Mechanics one recognizes, with regard to the counter entry, that growing expenses in overall economy mean growing revenues as well and that, for instance, at payment lock step there is no correlation at all between overall sales volume and need for medium of exchange.

Beside the mechanics of the real identities, in particular of buy surplus and sales surplus, it is just the insight from Balances Mechanics thinking that shows many issues, which commonly and with levity are viewed as connected, are not connected mechanically at all. Stützel uses the term "problem plaitings" (German: "Problemverschlingungen") when e.g. the equilibrium of the plans for changes of money assets are identified as invalid with the lock step of those changes and the steady state of the overall expenses or the capital stock. Similar applies to Balances Mechanics of – strictly viewed as separated – operations of money assets and operations of medium of exchange, which can only enable a self-consistent clarification of the interrelations between money system and real economy by using a clear distinction.

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