Comparison of Living Costs in the USA and the Czech Republic Using Monetary-Minute Currency

Abstract

The evaluation study deals with the function of money in the management of economic and business processes. The author has postulated a yearly time potential 525,600 minutes as a commodity for its time-based money system. The author has defined a new currency—a Monetary-Minute Currency (in abbreviation MonMin Currency, ṁ )—as a value of the GDP per capita of a specific state divided by the number of minutes per year (525,600). The author has calculated the MonMin values for the U.S. and Czech economies in the 2010-2018 years. The author has found out, that the MonMin Currency is a usable tool for comparison of living costs and economic performances of the individual states, as well as for evaluating a quality of monetary policy of states. The author has identified distortion of the real Czech economy outcomes expressed in US$, in comparison with outcomes in the MonMin Currency in CZK. In author’s opinion, the Czech Crown’s exchange rate against the US dollar was determined on the money market rather than based on the real economy in 2010-2018.