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Encyclopedia > Money
Various denominations of currency, one form of money.

Money is any token or other object that functions as a medium of exchange that is socially and legally accepted in payment for goods and services and in settlement of debts. Money also serves as a standard of value for measuring the relative worth of different goods and services and as a store of value. Some authors explicitly require money to be a standard of deferred payment.[1] Look up money in Wiktionary, the free dictionary. ... Download high resolution version (2392x1561, 621 KB) Wikipedia does not have an article with this exact name. ... Download high resolution version (2392x1561, 621 KB) Wikipedia does not have an article with this exact name. ... A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system. ... A payment is the act of transfering wealth into another person or company. ... Debt is that which is owed. ... A standard of deferred payment is the accepted way (in a given market) to settle a debt. ...


Money includes both currency, particularly the many circulating currencies with legal tender status, and various forms of financial deposit accounts, such as demand deposits, savings accounts, and certificates of deposit. In modern economies, currency is the smallest component of the money supply. This list of circulating currencies contains the 194 current official or de facto currencies of the 192 United Nations member states, one UN observer state, three partially recognized sovereign states, six unrecognized countries, and 33 dependencies. ... Legal tender or forced tender is payment that cannot be refused in settlement of a debt denominated in the same currency by virtue of law. ... In macroeconomics, money supply (monetary aggregates, money stock) is the quantity of currency and money in bank accounts in the hands of the non-bank public available within the economy to purchase goods, services, and securities. ...


Money is not the same as real value, the latter being the basic element in economics. Money is central to the study of economics and forms its most cogent link to finance. The absence of money causes an economy to be inefficient because it requires a coincidence of wants between traders, and an agreement that these needs are of equal value, before a barter exchange can occur. The efficiency gains through the use of money are thought to encourage trade and the division of labour, in turn increasing productivity and wealth. Face-to-face trading interactions on the New York Stock Exchange trading floor. ... Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects. ... The coincidence of wants problem (often double coincidence of wants) is an important category of transaction costs that impose severe limitations on economies lacking money and thus dominated by barter or other in-kind transactions. ... A 19th-centure example of barter: A sample labor for labor note for the Cincinnati Time Store. ... For the business meaning, see Wealth (economics). ...

Contents

Economic characteristics

Money is generally considered to have the following characteristics, which are summed up in a rhyme found in older economics textbooks and a primer: "Money is a matter of functions four, a medium, a measure, a standard, a store."


There have been many historical arguments regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. 'Financial capital' is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender.


Medium of exchange

Main article: Medium of exchange

A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system. ...

Unit of account

Main article: Unit of account

A unit of account is a standard numerical unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. A unit of account is a standard numerical unit of measurement for the market value of goods, services, and other transactions. ...

  • Divisible into small units without destroying its value; precious metals can be coined from bars, or melted down into bars again.
  • Fungible: that is, one unit or piece must be exactly equivalent to another, which is why diamonds, works of art or real estate are not suitable as money.
  • A specific weight, or measure, or size to be verifiably countable. For instance, coins are often made with ridges around the edges, so that any removal of material from the coin (lowering its commodity value) will be easy to detect.

Fungibility is the degree to which all instances of a given commodity are considered interchangeable. ... This article is about the mineral. ... This article is about the philosophical concept of Art. ... Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ...

Store of value

Main article: Store of value

To act as a store of value, a commodity, a form of money, or financial capital must be able to be reliably saved, stored, and retrieved — and be predictably useful when it is so retrieved. Fiat currency like paper or electronic currency no longer backed by gold in most countries is not considered by some economists to be a store of value. To act as a store of value, a commodity, a form of money or financial capital must be able to be reliably saved, stored, and retrieved - and be predictably useful when it is so retrieved. ... In brief, financial capital is money used by entreprenuers and businesses to buy what they need to make their products (or provide their services). ...


Market liquidity

Main article: Market liquidity

It is important for any economy to move beyond a simple system of bartering. Liquidity describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognised and accepted as the common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter. Market liquidity is a business, economics or investment term that refers to an assets ability to be easily converted through an act of buying or selling without causing a significant movement in the price and with minimum loss of value. ...


Liquid financial instruments are easily tradable and have low transaction costs. There should be no — or minimal — spread between the prices to buy and sell the instrument being used as money. This page is a candidate to be moved to Wiktionary. ... In economics and related disciplines, a transaction cost is a cost incurred in making an economic exchange. ... The bid/offer spread is the difference between the buying (bid) and selling (offer) price of the same stock or currency transaction. ...


Types of money

In economics, money is a broad term that refers to any instrument that can be used in the resolution of debt. However, different types of money have different economic strengths and liabilities. Theoretician Ludwig von Mises made that point in his book The Theory of Money and Credit, and he argued for the importance of distinguishing among three types of money: commodity money, fiat money, and credit money. Modern monetary theory also distinguishes among different types of money, using a categorization system that focuses on the liquidity of money. Ludwig Heinrich Edler von Mises (September 29, 1881 – October 10, 1973) (pronounced was a notable economist and a major influence on the modern libertarian movement. ... Along with Carl Mengers Princiles of Economics, and Bohm-Bawerks Capital and Interest, Ludwig von Mises Theory of Money and Credit, published in 1912, was a major contribution to economic theory. ...


Commodity money

Main article: Commodity money

Commodity money is any money that is both used as a general purpose medium of exchange and as a tradable commodity in its own right.[2] Commodity money is money whose value comes from a commodity out of which it is made. ... Image File history File links Emblem-important. ...


Commodity-based currencies are often viewed as more stable, but this is not always the case. The value of a commodity-based currency as a medium of exchange depends on its supply relative to other goods and services available in the economy. Historically, gold, silver and other metals commonly used in commodity-based monetary systems have been subject to regular and sometimes extraordinary fluctuations in purchasing power. This not only damages its stability as a medium of exchange; it also reduces its effectiveness as a store of value. In the 1500s and 1600s huge quantities of gold and even larger amounts of silver were discovered in the New World and brought back to Europe for conversion into coin. As a result, the purchasing power of those coins fell by 60% to 80%, i.e. the prices of goods rose, because the supply of goods did not keep pace with the increased supply of money.[3] In addition, the relative value of silver to gold shifted dramatically downward.[4] Such discoveries of huge sources of gold or silver are a thing of the past, and lend to their supply stability. More recently, from 1980 to 2001, gold was a particularly poor store of value, as gold prices dropped from a high of $850/oz. ($27.30 /g) to a low of $255/oz. ($8.20 /g).[citation needed] It should be noted that gold was not a currency at this time, and was fluctuating due to its status as a final store of value — that is, the price never goes to zero as fiat currencies inevitably do.[citation needed] The advantage of gold and silver, however, lies in the fact that, unlike fiat paper currency, the supply cannot be increased arbitrarily by a central bank.


It is also possible for the trading value of a commodity money to be greater than its value as a medium of exchange when governments attempt to fix exchange rates between different commodity monies. When this happens people will often start melting down coins and reselling the metal used to make them. This has happened periodically in the United States, eventually causing it to move away from pure silver nickels and pure copper pennies.[citation needed] Shipping coins from one jurisdiction to another so that they could be reminted was sometimes a lucrative trade before the advent of trusted paper money. [citation needed]


Commodity money's ability to function as a store of value is also limited by its very nature. Copper and tin risk rust and corrosion. Gold and silver are soft metals that can lose weight through scratches and abrasions, but this is nothing by comparison to fiat currencies, where billions of dollars can be injected ("printed") into the market within moments.


Stability aside, commodity-based currencies may have a tendency to restrain growth in a very active economy. For example, in order to maintain the price level, the supply of money in an any economy must be equal or greater than the volume of goods and services produced. If commodities are used as money, then the total production can easily outstrip the supply of those commodities, which leads to price deflation. The lower prices of goods would signal to their producers to reduce the supply of goods, hence restoring the price level. As such, production within commodity-based economies tends to be limited by the supply of the commodity currency.[citation needed]


This problem is compounded by the fact that money also serves as a store of value. This encourages hoarding (in other circumstances known as "saving") and takes the commodity money out of circulation, reducing the supply. The supply of circulating commodity currency is further reduced by the fact that commodity moneys also have competing non-monetary uses. For example, gold and silver are used in jewellery, and nickel and copper have important industrial uses.


Commodity-based currencies also limit the geographic extent of the trading market. To make large purchases either a large volume or a high weight or both of the commodity must be transported to the seller. The cost of transportation of the currency raises the transaction cost and makes long distance sales less attractive.

Banknotes from all around the world donated by visitors to the British Museum, London.
Banknotes from all around the world donated by visitors to the British Museum, London.

Image File history File linksMetadata Size of this preview: 800 × 600 pixelsFull resolution (2592 × 1944 pixel, file size: 1. ... Image File history File linksMetadata Size of this preview: 800 × 600 pixelsFull resolution (2592 × 1944 pixel, file size: 1. ... The British Museum in London, England is a museum of human history and culture. ...

Fiat money

Main article: Fiat money

Fiat money is any money whose value is determined by legal means rather than the relative availability of goods and services. Fiat money may be symbolic of a commodity or government promises.[2] Fiat money or fiat currency, is money that is current or legal tender as satisfaction for money debts by government fiat, that is by law. ...


Fiat money provides solutions to several limitations of commodity money. Depending on the laws, there may be little or no need to physically transport the money — an electronic exchange may be sufficient. Its sole use is as a medium of exchange so its supply is not limited by competing alternate uses. It can be printed without limit, so there is no limit on trade volumes.


Fiat money, especially in the form of paper or coins, can be easily damaged or destroyed. However, it has an advantage over commodity money in that the same laws that created the money can also define rules for its replacement in case of damage or destruction. For example, the US government will replace mutilated paper money if at least half of the bill can be reconstructed.[5]. By contrast commodity money is gone for good.


Paper money is especially vulnerable to everyday hazards: from fire, water, termites, and simple wear and tear. Money in the form of minted coins is more durable but a significant portion is simply lost in everyday use. In order to reduce replacement costs, many countries are converting to plastic bills. For example, Mexico has changed its twenty and fifty pesos notes, Singapore its $2, $5, $10 and $50 bills, Malaysia with RM5 bill, and Australia and New Zealand their $5, $10, $20, $50 and $100 to plastic for the increased durability.


Some of the benefits of fiat money can be a double-edged sword. For example, if the amount of money in active circulation outstrips the available goods and services for sale, the effect can be inflationary. This can easily happen if governments print money without attention to the level of economic activity or counterfeiters are allowed to flourish.


Perhaps the biggest criticism of paper money relates to the fact that its stability is highly dependent on the stability of the legal system backing the currency. Should the legal system fail, so would the currency that depends on it.


Credit money

Main article: Credit money

Credit money is any claim against a physical or legal person that can be used for the purchase of goods and services[2]. Credit money differs from commodity and fiat money in two important ways: It is not payable on demand and there is some element of risk that the real value upon fulfillment of the claim will not be equal to real value expected at the time of purchase[2]. Credit money is money that is backed by a promise to pay made by someone other than the state. ... Credit money is money that is backed by a promise to pay made by someone other than the state. ... Nominal value is the value of anything expressed in money of the day, versus real value which removes the effect of inflation. ...


This risk comes about in two ways and affects both buyer and seller.


First it is a claim and the claimant may default (not pay). High levels of default have destructive supply side effects. If manufacturers and service providers do not receive payment for the goods they produce, they will not have the resources to buy the labor and materials needed to produce new goods and services. This reduces supply, increases prices and raises unemployment, possibly triggering a period of stagflation. In extreme cases, widespread defaults can cause a lack of confidence in lending institutions and lead to economic depression. For example, abuse of credit arrangements is considered one of the significant causes of the Great Depression of the 1930s.[6] In economics, a depression is a term commonly used for a sustained downturn in the economy. ... For other uses, see The Great Depression (disambiguation). ...


The second source of risk is time. Credit money is a promise of future payment. If the interest rate on the claim fails to compensate for the combined impact of the inflation (or deflation) rate and the time value of money, the seller will receive less real value than anticipated. If the interest rate on the claim overcompensates, the buyer will pay more than expected. Deflation (economics) Deflation (data compression) Deflation is the removal of loose soil by eolian (wind) processes This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ... The time value of money is the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal. ...


Over the last two centuries, credit money has steadily risen as the main source of money creation, progressively replacing first commodity then fiat money.


The main problem with credit money is that its supply moves in line with credit booms and bust. When lenders are optimistic (notably when the debt level is low), they increase their lendings activity, thus creating new money and triggering inflation, when they are pessimistic (for instance because the debt level is perceived as so high that defaults can only follow), they reduce their lending activities, bankruptcies and deflation follows.


Money supply

Main article: Money supply

The money supply is the amount of money within a specific economy available for purchasing goods or services. The supply in the US is usually considered as four escalating categories M0, M1, M2 and M3. The categories grow in size with M3 representing all forms of money (including credit) and M0 being just base money (coins, bills, and central bank deposits). M0 is also money that can satisfy private banks' reserve requirements. In the US, the Federal Reserve is responsible for controlling the money supply, while in the Euro area the respective institution is the European Central Bank. Other central banks with significant impact on global finances are the Bank of Japan, People's Bank of China and the Bank of England. In macroeconomics, money supply (monetary aggregates, money stock) is the quantity of currency and money in bank accounts in the hands of the non-bank public available within the economy to purchase goods, services, and securities. ... The Federal Reserve System is headquartered in the Eccles Building on Constitution Avenue in Washington, DC. The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. ... The Eurozone (also called Euro Area, Eurosystem or Euroland) is the subset of European Union member states which have adopted the euro, creating a currency union. ... Headquarters Coordinates , , Established 1 January 1998 President Jean-Claude Trichet Central Bank of Austria, Belgium, France, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovenia, Spain Currency Euro ISO 4217 Code EUR Reserves €43bn directly, €338bn through the Eurosystem (including gold deposits). ... The Bank of Japan has its headquarters in this building in Tokyo. ... The Peoples Bank of China (PBC) (Simplified Chinese: 中国人民银行; Traditional Chinese: 中國人民銀行; pinyin: Zhōngguó Rénmín Yínháng ) (not to be confused with the Bank of China or the Central Bank of China) is the central bank of the Peoples Republic of China with the power to... Headquarters Coordinates , , Governor Mervyn King Central Bank of United Kingdom Currency Pound sterling ISO 4217 Code GBP Base borrowing rate 5. ...


When gold is used as money, the money supply can grow in either of two ways. First, the money supply can increase as the amount of gold increases by new gold mining at about 2% per year, but it can also increase more during periods of gold rushes and discoveries, such as when Columbus discovered the new world and brought gold back to Spain, or when gold was discovered in California in 1848. This kind of increase helps debtors, and causes inflation, as the value of gold goes down. Second, the money supply can increase when the value of gold goes up. This kind of increase in the value of gold helps savers and creditors and is called deflation, where items for sale are less expensive in terms of gold. Deflation was the more typical situation for over a century when gold and credit money backed by gold were used as money in the US from 1792 to 1913. A century (From the Latin cent, one hundred) is one hundred consecutive years. ...


Monetary policy

Main article: Monetary policy

Monetary policy is the process by which a government, central bank, or monetary authority manages the money supply to achieve specific goals. Usually the goal of monetary policy is to accommodate economic growth in an environment of stable prices. For example, it is clearly stated in the Federal Reserve Act that the Board of Governors and the Federal Open Market Committee should seek “to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.”[7] Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        Monetary policy is the process by which the government, central bank... In macroeconomics, money supply (monetary aggregates, money stock) is the quantity of currency and money in bank accounts in the hands of the non-bank public available within the economy to purchase goods, services, and securities. ... The Federal Reserve Act, also known as the Act of December 23, 1913, ch. ... A board of governors is usually the governing board of a public entity. ... The Federal Open Market Committee (FOMC), a component of the Federal Reserve System, is charged under U.S. law with overseeing open market operations in the United States, and is the principal tool of US national monetary policy. ...


A failed monetary policy can have significant detrimental effects on an economy and the society that depends on it. These include hyperinflation, stagflation, recession, high unemployment, shortages of imported goods, inability to export goods, and even total monetary collapse and the adoption of a much less efficient barter economy. This happened in Russia, for instance, after the fall of the Soviet Union. Certain figures in this article use scientific notation for readability. ... This article uses excessive clichés and jargon. ... In macroeconomics, a Recession is a decline in any countrys Gross Domestic Product (GDP), or negative real economic growth, for two or more successive quarters of a year. ... This article does not cite any references or sources. ... This is a history of the Soviet Union from 1985 to 1991. ...


Governments and central banks have taken both regulatory and free market approaches to monetary policy. Some of the tools used to control the money supply include:

  • currency purchases or sales
  • increasing or lowering government spending
  • increasing or lowering government borrowing
  • changing the rate at which the government loans or borrows money
  • manipulation of exchange rates
  • taxation or tax breaks on imports or exports of capital into a country
  • raising or lowering bank reserve requirements
  • regulation or prohibition of private currencies

For many years much of monetary policy was influenced by an economic theory known as monetarism. Monetarism is an economic theory which argues that management of the money supply should be the primary means of regulating economic activity. The stability of the demand for money prior to the 1980s was a key finding of Milton Friedman and Anna Schwartz[8] supported by the work of David Laidler[9], and many others. An interest rate is the price a borrower pays for the use of money he does not own, and the return a lender receives for deferring his consumption, by lending to the borrower. ... Monetarism is a set of views concerning the determination of national income and monetary economics. ... Milton Friedman (July 31, 1912 – November 16, 2006) was an American Nobel Laureate economist and public intellectual. ... Anna Schwartz is an economist who has changed our understanding of how the world works. ... David E.W. Laidler (b. ...


The nature of the demand for money changed during the 1980s owing to technical, institutional, and legal factors and the influence of monetarism has since decreased.


History of money

Main article: History of money

The first golden coins in history were coined by Lydian king Croesus, around 560 BC. The first Greek coins were made initially of copper, then of iron because copper and iron were powerful materials used to make weapons. Pheidon king of Argos, around 700 BC, changed the coins from iron to a rather useless and ornamental metal, silver, and, according to Aristotle, dedicated some of the remaining iron coins (which were actually iron sticks) to the temple of Hera[1]. King Pheidon coined the silver coins at Aegina, at the temple of the goddess of wisdom and war Athena the Aphaia (the vanisher), and engraved the coins with a Chelone, which is to this day as a symbol of capitalism. Chelone coins[2] were the first medium of exchange that was not backed by a real value good. They were widely accepted and used as the international medium of exchange until the days of Peloponnesian War, when the Athenian Drachma replace them. According other fables, inventors of money were Demodike(or Hermodike) of Kymi (the wife of Midas), Lykos (son of Pandion II and ancestor of the Lycians) and Erichthonius, the Lydians or the Naxians. The history of money is a story spanning thousands of years. ... Lydia (Greek ) is a historic region of western Anatolia, congruent with Turkeys modern provinces of İzmir and Manisa. ... Croesus Croesus (IPA pronunciation: , CREE-sus) was the king of Lydia from 560/561 BC until his defeat by the Persians in about 547 BC. The English name Croesus come from the Latin transliteration of the Greek , in Arabic and Persian قارون, Qârun. ... Copper has played a significant part in the history of mankind, which has used the easily accessible uncompounded metal for nearly 10,000 years. ... For other uses, see Iron (disambiguation). ... Pheidon (8th or 7th century BC) was king of Argos, generally, though wrongly, called tyrant. ... This article is about the city in Greece. ... This article is about the chemical element. ... For other uses, see Aristotle (disambiguation). ... Aegina (Greek: Αίγινα (Egina)) is one of the Saronic Islands of Greece in the Saronic Gulf, 31 miles (50 km) from Athens. ... For other uses, see Athena (disambiguation). ... Aphaea (gr. ... Chelone is a plant genus commonly known as turtlehead. ... For other uses, see Capitalism (disambiguation). ... “Athenian War” redirects here. ... Drachma, pl. ... For Cuma, near Naples, Italy, see Cumae. ... For other uses, see Midas (disambiguation). ... Lycus or Lykos may refer to: Lycus or Lykos (Greek: Λύκος)Place Name in Greece Lykos (Small beach in southern Crete), small secluded beach in Southern Crete, near Sfakia. ... In Greek mythology, Pandion II was son and heir of Cecrops II, King of Athens. ... Lycian rock cut tombs of Dalyan Lycian rock cut tombs of Dalyan Lycia (in Lycian, Trm̃misa (see List of Lycian place names); in ancient Greek, Λυκία and in modern Turkish, Likya) is a region in the modern-day provinces of Antalya and Muğla on the southern coast of Turkey. ... King Erichthonius (also called Erechtheus I) was, according to some legends, autochthonous (born of the soil), and in other accounts he was the son of Hephaestus and Gaia or Athena or Atthis. ... Lydia (Greek ) is a historic region of western Anatolia, congruent with Turkeys modern provinces of İzmir and Manisa. ... Naxos is the largest island (428 km² ) in the Cyclades island group in the Aegean Sea, which separates Greece and Turkey. ...


See also

Category:Money

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Image File history File linksMetadata Download high resolution version (910x910, 596 KB)Media:Example. ... Image File history File links This is a lossless scalable vector image. ... Wikiquote is one of a family of wiki-based projects run by the Wikimedia Foundation, running on MediaWiki software. ... Wikipedia does not have an article with this exact name. ... Wiktionary (a portmanteau of wiki and dictionary) is a multilingual, Web-based project to create a free content dictionary, available in over 150 languages. ... Image File history File links Commons-logo. ... Face-to-face trading interactions on the New York Stock Exchange trading floor. ... Topics in finance include: // Finance an overview Arbitrage Capital (economics) Capital asset pricing model Cash flow Cash flow matching Debt Default Consumer debt Debt consolidation Debt settlement Credit counseling Bankruptcy Debt diet Debt-snowball method Discounted cash flow Financial capital Funding Financial modeling Entrepreneur Entrepreneurship Fixed income analysis Gap financing... A coin of account is a unit of money that does not exist as an actual coin (that is, a metal disk) but is used in figuring prices or other amounts of money. ... For other uses, see Counterfeit (disambiguation). ... For other uses, see Counterfeit (disambiguation). ... Credit money is money that is backed by a promise to pay made by someone other than the state. ... The Currency Market or Foreign Exchange Market is one of the largest markets in the world. ... A debt-based monetary system is an economic system where money is created primarily through fractional reserve banking techniques, using the private banking system. ... Electronic money (also known as electronic cash, electronic currency, digital money, digital cash or digital currency) refers to money or scrip which is exchanged only electronically. ... The euro and the US dollar are by far the most used currencies in terms of global reserves. ... The Federal Reserve System is headquartered in the Eccles Building on Constitution Avenue in Washington, DC. The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. ... In economics, particularly in financial economics, fractional-reserve banking is the near-universal practice of banks of retaining only a fraction of their deposits and notes as reserves to satisfy demands for withdrawals, investing the remainder at interest to obtain income that can be used to pay interest to depositors... Full-reserve banking is a theoretically conceivable banking practice in which all currency circulating in a financial system would be backed up by an asset that is generally considered to be a stable store of value, such as gold. ... Labour vouchers (also known as labour cheques, labour certificates, and labour-time vouchers) are a device proposed to govern demand for goods in socialism, much as money does under capitalism. ... This article or section does not cite its references or sources. ... Numismatics is the scientific study of currency and its history in all its varied forms. ... Seigniorage, also spelled seignorage, is the net revenue derived from the issuing of currency. ... A standard of deferred payment is the accepted way (in a given market) to settle a debt. ... A free market is an idealized market, where all economic decisions and actions by individuals regarding transfer of money, goods, and services are voluntary, and are therefore devoid of coercion and theft (some definitions of coercion are inclusive of theft). Colloquially and loosely, a free market economy is an economy... A gift economy is an economic system in which goods and services are given without any explicit agreement for immediate or future quid pro quo. ... For the business meaning, see Wealth (economics). ... Look up usury in Wiktionary, the free dictionary. ...

References

  1. ^ amosweb.com
  2. ^ a b c d Mises, Ludwig von. The Theory of Money and Credit. Indianapolis, IN: Liberty Fund, Inc.. 1981, trans. H. E. Batson, 1981. [Online] available from http://www.econlib.org/library/mises/msT1.html; accessed 9 May 2007; Internet. [http://www.econlib.org/library/mises/msT1.html#Part%20I,Ch.3 Chapter I, section 3, paragraph 25.
  3. ^ Galbraith, J.K., Money: Whence it came, where it went, Penguin, UK, 1975, p.20–21.
  4. ^ Weatherford, J., "Indian Givers: How the Indians of the Americas Transformed the World", Ballantine Books, US 1988, p16
  5. ^ Shredded and mutilated. Bureau of engraving and printing. Last accessed 2007-05-09
  6. ^ Barry Eichengreen and Kris Mitchener. The Great Depression as a Credit Boom Gone Wrong. Last accessed 2007-05-08.
  7. ^ The Federal Reserve. 'Monetary Policy and the Economy". Board of Governors of the Federal Reserve System, (2005-07-05). Retrieved 2007-05-15.
  8. ^ Milton Friedman, Anna Jacobson Schwartz, (1971). Monetary History of the United States, 1867–1960. Princeton, N.J: Princeton University Press. ISBN 0-691-00354-8. 
  9. ^ David Laidler,. Money and Macroeconomics: The Selected Essays of David Laidler (Economists of the Twentieth Century). Edward Elgar Publishing. ISBN 1-85898-596-X. 

Along with Carl Mengers Princiles of Economics, and Bohm-Bawerks Capital and Interest, Ludwig von Mises Theory of Money and Credit, published in 1912, was a major contribution to economic theory. ... For other uses, see The Great Depression (disambiguation). ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 186th day of the year (187th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 135th day of the year (136th in leap years) in the Gregorian calendar. ...

External links

  • Current Currency Exchange Rates by boc
  • Linguistic and Commodity Exchanges by Elmer G. Wiens. Examines the structural differences between barter and monetary commodity exchanges and oral and written linguistic exchanges.

Face-to-face trading interactions on the New York Stock Exchange trading floor. ... Circulation in macroeconomics Macroeconomics is a branch of economics that deals with the performance, structure, and behavior of a national economy as a whole. ... In economics, adaptive expectations means that people base their expectations of what will happen in the future based on what has happened in the past. ... The balance of payments is a measure of the payments that flow from one exports and imports of goods, services, and financial capital, as well financial transfers. ... For other uses, see Gold standard (disambiguation). ... Greshams law is commonly stated as: When there is a legal tender currency, bad money drives good money out of circulation. or more accurately Money overvalued by the State will drive money undervalued by the State out of circulation. ... The IS curve moves to the right, causing higher interest rates and expansion in the real economy (real GDP). ... Template:Push up GNP redirects here. ... Central banks set monetary policy. ... National Income and Product Accounts (NIPA) use double entry accounting to report the monetary value and sources of output produced in a country and the distribution of incomes that production generates. ... PPP The purchasing power parity (PPP) theory was developed by Gustav Cassel in 1920. ... Rational expectations is a theory in economics originally proposed by John F. Muth (1961) and later developed by Robert E. Lucas Jr. ... Ronald Reagan, the US president from which Reaganomics derives its name Reaganomics (a blend of Reagan and economics, coined by radio broadcaster Paul Harvey) is a term that has been used to both describe and decry free market advocacy economic policies of U.S. President Ronald Reagan, who served from... In macroeconomics, a Recession is a decline in any countrys Gross Domestic Product (GDP), or negative real economic growth, for two or more successive quarters of a year. ... The Stockholm School, or Stockholmsskolan, is a school of economic thought. ... This article does not cite any references or sources. ... The Austrian School is a school of economic thought which rejects opposing economists reliance on methods used in natural science for the study of human action, and instead bases its formalism of economics on relationships through logic or introspection called praxeology. ... Keynesian economics (pronounced kainzian, IPA ), also called Keynesianism, or Keynesian Theory, is an economic theory based on the ideas of the 20th-century British economist John Maynard Keynes. ... Monetarism is a set of views concerning the determination of national income and monetary economics. ... New Classical Economics emerged as a school in Macroeconomics during the 1970s. ... New Keynesian economics developed partly in response to new classical economics. ... Supply-side economics is a school of macroeconomic thought which emphasizes the importance of tax cuts and business incentives in encouraging economic growth, in the belief that businesses and individuals will use their tax savings to create new businesses and expand old businesses, which in turn will increase productivity, employment... Welfare economics is a branch of economics that uses microeconomic techniques to simultaneously determine the allocational efficiency of a macroeconomy and the income distribution associated with it. ... This article does not cite any references or sources. ... Face-to-face trading interactions on the New York Stock Exchange trading floor. ... The Politics series Politics Portal This box:      Political economy was the original term for the study of production, the acts of buying and selling, and their relationships to laws, customs and government. ... This aims to be a complete list of the articles on economics. ... Economic geography provides an overview of economic geography topics. ... International trade - an overview Absolute advantage Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) APEC Autarky Balance of trade barter Bilateral Investment Treaty (BIT) Bimetallism branch plant Bretton Woods Conference Bretton Woods system British timber trade Cash crop Comparative advantage Continental trading bloc Cost, insurance and freight Currency... This is a list of important publications in economics, organized by field. ... Microeconomics (or price theory) is a branch of economics that studies how individuals, households, and firms make decisions to allocate limited resources,[1] typically in markets where goods or services are being bought and sold. ... In economics, scarcity is defined as a condition of limited resources, where society does not have sufficient resources to produce enough to fulfill subjective wants. ... In economics, opportunity cost, or economic cost, is the cost of something in terms of an opportunity forgone (and the benefits which could be received from that opportunity), or the most valuable forgone alternative (or highest-valued option forgone), i. ... The supply and demand model describes how prices vary as a result of a balance between product availability at each price (supply) and the desires of those with purchasing power at each price (demand). ... In economics, elasticity is the ratio of the proportional change in one variable with respect to proportional change in another variable. ... The term surplus is used in economics for several related quantities. ... Polish meat shop in the 1980s. ... In economics, aggregate demand is the total demand for goods and services in the economy (Y) during a specific time period. ... Consumer theory is a theory of economics. ... This article or section does not cite any references or sources. ... In microeconomics, the main criteria by which one can distinguish between different market forms are: the number and size of producers and consumers in the market, the type of goods and services being traded, and the degree to which information can flow freely. ... Welfare economics is a branch of economics that uses microeconomic techniques to simultaneously determine the allocational efficiency of a macroeconomy and the income distribution associated with it. ... Market failure is a term used by economists to describe the condition where the allocation of goods and services by a market is not efficient. ... International economics is a branch of economics with two main subdisciplines international trade and international finance. ... This article does not cite any references or sources. ... Labour economics seeks to understand the functioning of the market for labour. ... Environmental economics is a subfield of economics concerned with environmental issues (other usages of the term are not uncommon). ... Industrial organization is the field of economics that studies the behavior of firms, the structure of markets and of their interactions. ... This article does not cite any references or sources. ... ... Economic sociology may be defined as the sociological analysis of economic phenomena. ... Institutional economics focuses on understanding the role of human-made institutions in shaping economic behavior. ... Economic geography is the study of the location, distribution and spatial organisation of economic activities across the Earth. ... In the humanities and social sciences, the term positive is used in a number of ways. ... Normative economics is the branch of economics that incorporates value judgments about what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal. ... Nobel Prize in Economics winner Daniel Kahneman, was an important figure in the development of behavioral finance and economics and continues to write extensively in the field. ... Experimental economics is the use of experimental methods to evaluate theoretical predictions of economic behaviour. ... Econometrics is concerned with the tasks of developing and applying quantitative or statistical methods to the study and elucidation of economic principles. ... Computational economics is a form of economics which relies on mathematical methods, including mathematical economics and econometrics. ... For other persons named Adam Smith, see Adam Smith (disambiguation). ... David Ricardo (18 April 1772–11 September 1823), a political economist, is often credited with systematizing economics, and was one of the most influential of the classical economists, along with Thomas Malthus and Adam Smith. ... Ludwig Heinrich Edler von Mises (September 29, 1881 – October 10, 1973) (pronounced was a notable economist and a major influence on the modern libertarian movement. ... Keynes redirects here. ... Milton Friedman (July 31, 1912 – November 16, 2006) was an American Nobel Laureate economist and public intellectual. ...


  Results from FactBites:
 
Amazon.com: Money (1-year): Magazines (793 words)
"Money" magazine has long been a staple of those who are looking to better their financial condition.
Now certainly to make money you buy low and sell high, but there are several solid mutual fund companies that have made money in this market and would make money in a bull market, too.
"Money" excels when it discusses strategies for saving money on purchases, aids in avoiding taxes, or looks at financial vehicles that are less common (REITs, etc.), but since its bread and butter is still stocks and bonds, it is less helpful than other resources.
Money - Uncyclopedia, the content-free encyclopedia (738 words)
Money is a Coerced Religion; people either believe that it has value, or they are coerced to believe it because everybody else does.
Believers in money are deeply religious — they serve their money-god with all of their effort and strength, often sacrificing hours a day as an offering to gain its approval, which they believe will bring them pleasure and happiness in the afterlife.
Big money can also be identified by the fact that it allows you to purchase such items as the yacht, the Cadillac, and the Almighty Sword of Smiting +5.
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