What Is Money?
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Question: What Is Money?Answer: The
as:Money is a good that acts as a medium of exchange in transactions. Classically it is said that money acts as a unit of account, a store of value, and a medium of exchange. Most authors find that the first two are nonessential properties that follow from the third. In fact, other goods are often better than money at being intertemporal stores of value, since most monies degrade in
over time through inflation or the overthrow of governments.
What Is Money? It Is More Than Pieces of Paper.So money isn't just pieces of paper. It's a medium of exchange that facilitates trade. Suppose I have a Wayne Gretzky hockey card that I'd like to exchange for a new pair of shoes. Without the use of money, I have to find a person, or combination of people who have an extra pair of shoes to give up, and just happen to be looking for a Wayne Gretzky hockey card.
Quite obviously, this would be quite difficult. This is known as the
problem:[T]he double coincidence is the situation where the supplier of good A wants good B and the supplier of good B wants good A. The point is that the institution of money gives us a more flexible approach to trade than , which has the
of wants problem. Also known as dual coincidence of wants.Since money is a recognized medium of exchange, I do not have to find someone who has a pair of new shoes and is looking for a Wayne Gretzky hockey card. I just need to find someone who is looking for a Gretzky card who is willing to pay enough money so I can get a new pair at Footlocker.
This is a far easier problem, and thus our lives are a lot easier, and our economy more efficient, with the existance of money. What Is Money And How Is It Measured?As for what constitutes money and what does not, the article
gives the following definition, provided by The Federal Reserve Bank of New York:"The
publishes weekly and monthly data on three
-- M1, M2, and M3 -- as well as data on the total amount of debt of the nonfinancial sectors of the U.S. economy... The money supply measures reflect the different degrees of liquidity -- or spendability - that different types of money have. The narrowest measure, M1, is restricted to the most l it consists of currency in the demand deposits, and other deposits against which checks can be written. M2 includes M1, plus savings accounts,
of under $100,000, and balances in retail money market . M3 includes M2 plus large-denomination ($100,000 or more) time deposits, balances in institutional money funds, repurchase liabilities issued by depository institutions, and Eurodollars held by U.S. residents at foreign branches of U.S. banks and at all banks in the United Kingdom and Canada."
So there are several different classifications of money. Note that .Note that money is not the same thing as wealth. We cannot make ourselves richer by simply printing more money, as shown in the article .Here are a few more articles that will aid in your understanding of money:
What Is Money?请问谁能告诉我,interest rate与money supply 之间的关系,,如果_经济学吧_百度贴吧
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请问谁能告诉我,interest rate与money supply 之间的关系,,如果
有谁能告诉我异性之间有...
好好猜猜啊！
求大神，楼主新人，求带
谁能告诉我我的x键呢
镶嵌率和货币供给？
利率就是买卖钱的价格嘛
money supply增加more money is available to be borrowed所以interest rate 降低
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保存至快速回贴What Is the M3 Money Supply? | eHow
The money supply is the collective total amount of money circulating in an economy. Tracking the money supply allows economists to gauge money growth and helps regulators control inflation. The money supply can be measured, and its change calculated, in several ways. The most common measurements are labeled M1, M2 and M3.
The M1 money supply includes all the coins and currency held by the public, including checking account balances. M2 adds small time denominations to the M1 supply. M3 consists of everything in the M2 money supply plus large time deposits, institutional money market funds and Eurodollar funds. Accounts with over $100,000 are considered large time deposits. Eurodollars are dollars held in foreign offices at banks inside the United States.
By keeping track of the money supply, economists are able to determine the rate of change in dollar circulation. As a result, regulators can adopt fiscal policies to maintain a healthy level of inflation.
The Federal Reserve tracks and publishes the money supply data for the public. However, as of March 23, 2006, the Fed has stopped publishing M3 data. While the Fed continues to track only M1 and M2 statistics, some non-government organizations have tried to estimate the M3.}