Glossary of economics research
Results of search for money follow:
money:
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 value over time through inflation or the overthrow of
governments.
Theory: Ostroy and Starr, 1990, p. 25, define money in certain models
"as a commodity of positive price and zero transaction cost that does not
directly enter in production or consumption."
History: See this Web site on the History of Money.
Related terms:
Relevant terms:
bank note,
barter economy,
bill of exchange,
bimetallism,
Bretton Woods system,
capital ratio,
cash-in-advance constraint,
central bank,
demand deposits,
double coincidence of wants,
dynamic inconsistency,
EMS,
Eurodollar,
Fed Funds Rate,
fiat money,
Fisher effect,
Fisher equation,
Fisher hypothesis,
free reserves,
Friedman rule,
fungible,
Gresham's Law,
Hahn problem,
high-powered money,
inflation,
inside money,
k percent rule,
liquidity,
liquidity constraint,
M1,
M2,
medium of exchange,
monetarism,
monetarist view,
monetary base,
monetary regime,
monetary rule,
monetized economy,
money,
money illusion,
money-in-the-utility-function models,
neutrality,
outside money,
seignorage,
Shubik model,
specie,
speculative demand,
storable,
superneutrality,
time deposits,
Townsend inefficiency,
transactions demand.
Contexts: money; models
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