4 ms·
It sounds like he's saying that the banks should have a type system for money, maybe something like this: datatype Money = Deposit of int | Reserves of
by ajb 6y ago
It sounds like he's saying that the banks should have a type system for money, maybe something like this:
datatype Money
= Deposit of int
| Reserves of int
(Or maybe a unit system) and we shouldn't think of these as comparable..
- cm2187 6y agoYou just invented T-accounting!
- Konohamaru 6y agoWhat is T-accounting?
- cm2187 6y agoThe basic concept behind accounting, the T represents the balance sheet which must be balanced at all time, and every change in the balance sheet is always a tuple of two operations, either on both sides of the balance sheet, or on two lines of the same side. So if you start with an empty balance sheet and a customer comes with cash to deposit, your first operation is: increase deposits | increase cash. Then the bank lends money to a borrower: decrease cash | increase loans to customers. Then the borrower pays an interest: increase cash | increase equity Then you pay some interest to the depositor: decrease cash | decrease equity etc.
- rzzzt 6y agoAlso called double-entry bookkeeping: https://en.wikipedia.org/wiki/Double-entry_bookkeeping https://en.wikipedia.org/wiki/Double-entry_bookkeeping
- ajb 6y agoLol - I wish, but the datastructure I posited is a discriminated union, not a tuple.