Money

Money is any item or verifiable record that is accepted as payment for goods and services and repayment of debts and payment of national obligations, such as taxes, in a particular jurisdiction. Money is issued by a central bank.

  • Medium of Exchange - The capacity of an item to expedite trade between a buyer and seller because it is widely accepted as payment for a good and services.
  • Unit of Account - The capacity of an item, or subdivisions of itself, to function as a numerical monetary unit (numéraire) and act as a universal measure of the market value of goods, services, and other transactions.
  • Store of Value - The capacity of an item to retain purchasing power into the future and capacity to be saved with a predictable variance in its market value over long time periods.

Money is a social technology whose efficacy is based on both its universal acceptance in an economic region and the money's coherence to three properties above.

The United States dollar and the Euro are examples of money.

The qualifies of a currency representing money are defined by coherent several other properties:

  • Durability
  • Portability
  • Divisibility
  • Uniformity
  • Limited supply
  • Wide acceptability

See also private money and currency.

References

  1. Eich, Stefan. 2018. ‘The Currency of Politics’. The Political Theory of Money from Aristotle to Keynes.
  2. Varoufakis, Yanis. 2021. ‘What Is Money, Really? And Why Bitcoin Is Not the Answer (Even If Blockchain Is Brilliant & Potentially Helpful in Democratising Money)’. Yanis Varoufakis (blog). 2 August 2021. https://www.yanisvaroufakis.eu/2021/08/02/what-is-money/.
  3. Petz, Marcus. 2020. ‘When Is Money Not a Currency? Developments from Finland of Proto-Community Currencies’. International Journal of Community Currency Research 24 (2): 30–53.
  4. *‘Private Money vs Totally-Public Money, plus Some History | Financial Times’. n.d. Accessed 20 March 2022. https://www.ft.com/content/40592d6d-5a32-3606-a54f-cdc411e90c20.
  5. Larue, Louis. 2020. ‘“A Conceptual Framework for Classifying Currencies”.’ International Journal of Community Currency Research 24 (1): 45–60.
  6. Schroeder, Rolf F. H. 2020. ‘Beyond the Veil of Money: Boundaries as Constitutive Elements of Complementary Currencies’. The Japanese Political Economy 46 (1): 17–41. https://doi.org/10.1080/2329194x.2020.1762499.
  7. Steele, Graham. 2021. ‘The Miner of Last Resort: Digital Currency, Shadow Money and the Role of the Central Bank’. Technology and Government, Emerald Studies in Media and Communications, Forthcoming.
  8. Bazzani, Giacomo. 2020. ‘Money as a Tool for Collective Action’. Partecipazione e Conflitto 13 (1): 438–61. https://doi.org/10.1285/i20356609v13i1p438.