Meaning and function of money
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Meaning and Function of Money. Economist’s Meaning of Money 1.Anything that is generally accepted in payment for goods and services 2.Not the same as wealth or income Functions of Money 1.Medium of exchange – mitigates transaction costs => efficiency 2.Unit of account (vs. Barter)

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Meaning and Function of Money

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Meaning and function of money

Meaning and Function of Money

Economist’s Meaning of Money

1.Anything that is generally accepted in payment for goods and services

2.Not the same as wealth or income

Functions of Money

1.Medium of exchange – mitigates transaction costs => efficiency

2.Unit of account (vs. Barter)

3.Store of value (liquidity, price fluctuations, hyperinflation)

Evolution of Payments System - Money spontaneously emerged in every society

1.Precious metals like gold and silver

2.Paper currency (fiat money)

3.Checks

4.Electronic means of payment

5.Electronic money: Debit cards, Stored-value cards, Smart cards, E-cash


Federal reserve s monetary aggregates

Federal Reserve’s Monetary Aggregates


Growth rates of fed s monetary aggregates

Growth Rates of Fed’s Monetary Aggregates


How reliable are the m2 money data data revisions

How Reliable are the M2 Money Data: Data Revisions


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