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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (11025)	2/7/2006 12:20:44 AM
From: wonk	Read Replies (1) \| Respond to of 541604

In deference to our moderator, I'll keep it brief: If your at the fish market, they are equivilent. No they are not. Assuming for the sake of argument that one got the equivalent retail dollar value of fish and silver, the value of the fish must be discounted BOTH for lack of liquidity and the recipient being placed in the position of wholesaler. In the former case, change silver to dollars and the issue is clear. I can take dollars and buy anything I want. Yet, I have to find someone who wants fish. The loss of my time is a true economic cost. In the latter case, why should anyone take fish from me, when they can go to the fish monger and get it for the same price – and likely fresher? A discount will be demanded. If its a week long trip to get there they are not. The silver would probably be much better Yes, and cigarettes are more valuable than cash in World War II German Prisoner of War compounds, but that’s a straw man argument. Macroeconomics 101: Specialization, Exchange and Money….. ww