We analyze a monetary system of random money transfer on the basis of double entry bookkeeping. Without boundary conditions, we do not reach a price equilibrium and violate text-book formulas of economist's quantity theory (MV=PQ). To match the resulting quantity of money with the model...

Although economic practice is measured by bookkeeping, economic theory neglects its role. We want to bridge this gap. We analyze the structure of bookkeeping from a mechanical viewpoint and compare money with momentum. Bookkeeping and income statements translate to the physicist vocabulary of...