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To: Ilaine who wrote (6139)	7/20/2001 4:41:15 PM
From: Don Lloyd	Respond to of 74559

CB - >>One thing, and one thing only, is important about money<< I don't think even von Mises would say that, would he? I realize that Austrian economists don't use formulas but your statement seems a bit extreme.... If so, give me a counterexample. The function of money is to provide a universally desirable good which can take one side of any exchange. The most important characteristic is how much of it is needed to exchange for a given good or service, a subjective judgement dependent on both time and circumstance, as well as money supply, etc. >>For any economic activity, it is possible to imagine a supercomputer (Barter Central) whose only function is keep track of all the goods and services supplied and consumed and make sure that all the accounts are complete for a given period.<< Bart, the supercomputer, would confirm that in periods of recession, there are fewer transactions than in periods of expansion. The point is that money is not ultimately needed for the transactions themselves, but only for the net residuals that result in changes to account balances. Regards, Don