# kaal:claim:3402701-025

**Claim.** Defining the energy of money as the product of economic momentum and velocity gives a basis for discussing economic frictions and for distinguishing genuine from artificial network energy, which is what guards against hot money instability.

**Type.** definitional  **Support.** speculative

**Holds when.**

- proposed research framework, analogy to kinetic theory of gases

**Source quote.**

> With clearly specified definitions of energy we can discuss "frictions" in an economy due to inefficiencies, and we can distinguish "genuine" versus "artificial" network energy to guard against the instability arising from hot money

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Stable Cryptocurrencies - First Order Principles* (2019), 3.1.2.4 The Energy of Money, page 23

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701

**Verify.** sha256 of source PDF `72ed2581b4cac2bd18a5b2640be959487a3cbc34c86ab5e5664924bcdb53c8e0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Stable%20Cryptocurrencies%20-%20First%20Order%20Principles.pdf

**Topics.** economics

**Keywords.** energy-of-money, hot-money, economic-friction, quantity-theory-of-money

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