Chapter 5 A game theoretic approach to the theory of money and financial institutions This chapter discusses a game theoretic and gaming approach to the development of an appropriate microeconomic theory of money and financial institutions. The monetary and financial systems of an economy are part of the socio politico economic control mechanism used by every state to connect the economy with the polity and society. This neural network provides the administrative means to collect taxes direct investment provide public goods finance wars and facilitate international and intertemporal trade. Money measures provide a crude but serviceable basis for the accounting system which in turn along with the codification of commercial law and financial regulation are the basis for economic evaluation and the measurement of trust and fiduciary responsibility among economic agents. A basic purpose of the approach is adopted to show the minimal conditions that require that financial institutions and instruments emerge as the necessary carriers of process. The thrust is for the development of a mathematical institutional economics. A theory of money and financial institutions at the level of abstraction of general equilibrium theory is a theory of mechanisms and how they might work given the combination of economic forces and more or less exogenous socio political forces.