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Non-Tech : Monetary Policy and Standards
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To: long-gone who wrote (6)8/21/1999 10:07:00 PM
From: Hawkmoon  Read Replies (3) of 29
 
Certainly does Richard. It adds quite a bit.

Here's a great definition from that site:

"Money is anything that is widely used for making payments and accounting for debts and credits."

ex.ac.uk

Thus, that means if I wish to purchse or sell something using previously agreed upon denominations of e-money merely being debited from one account and credited to another, I've still used money.

So I differentiate between something that acts as a proxy for a barter exchange between the buyer and seller, and the value of what is purchased. Value/price is merely a psychologically arrived at
interpretation of supply and demand.

Example: We all know that most products are normally marked by the retailer by anywhere between 20 and 1000% (especially some of those designer dresses and shoes) above the material cost to produce them.

Now in a barter transaction, the buyer and seller would have to agree upon an exchange of goods or services that each agreed represent an equal value.

Now that value that is arrived at is totally subjective. If someone demands something badly enough they will exchange more for it. Or if there is an abundance of supply, the seller has difficulty demanding his high price.

So cutting to the chase on this.... money is what two parties agree upon acting as a proxy for a barter tranaction of goods and services.

And as a proxy, it is only has sound or unsound as is psychologically perceived by the participants.

That's how I (and apparently Glyn Davies, the author) define money.

Nice find Richard... I've bookmarked the link.

Regards,

Ron
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