Tuesday, January 13, 2015

The Definition of Money

Money has macro and micro facets which are both inter-related.

Macro, money is an attempt at representation of the summation of goods/services in the economy, whether current or future.

Micro, money is trust in future goods/services (conveyed thru a medium like a customer giving their "private" credit account # to a store for a good or service)

*If the finance institutions improperly guesstimate currency supply, there's less trust in the money. If the money medium is difficult to use, it affects the economy as a whole.

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