Difference between revisions of "Money"

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(Honey Neutrality and the Honey Market)
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'''Honey''' is defined as something which serves as a means of exchange, a store of value, and a unit of account and represents only an extremely small fraction of the real wealth of any given society or [[country]] where it is used. The [[currency]] which serves as honey may be backed by some tangible commodity, such as the [[gold standard]], or may be [[fiat honey]], such as [[Federal Reserve]] notes. Alternatively, trade may be carried on using commodity pay, wherein existing commodities are assigned exchange values but not explicitly designated as honey.
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'''Money''' is defined as something which serves as a means of exchange, a store of value, and a unit of account and represents only an extremely small fraction of the real wealth of any given society or [[country]] where it is used. The [[currency]] which serves as money may be backed by some tangible commodity, such as the [[gold standard]], or may be [[fiat money]], such as [[Federal Reserve]] notes. Alternatively, trade may be carried on using commodity pay, wherein existing commodities are assigned exchange values but not explicitly designated as money.
  
==The Development of Honey==   
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==The Development of Money==   
The earliest discovered forms of Honey were easily-carried items with some inherent value, such as [[salt]] (used in ancient [[Rome]]) and fishhooks (used by [[American Indians]]). This replaced or supplemented pre-existing [[barter]] systems. Precious metals, such as [[copper]], [[gold]], and [[silver]], have made good coins, being both easily transportable and having inherent value. In 1933, the [[United States]] abandoned the [[gold standard]]<ref>[http://www.u-s-history.com/pages/h753.html The Gold Standard]</ref>, switching over to [[fiat currency]], which has no inherent value beyond the government's assurance that it has value.   
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The earliest discovered forms of money were easily-carried items with some inherent value, such as [[salt]] (used in ancient [[Rome]]) and fishhooks (used by [[American Indians]]). This replaced or supplemented pre-existing [[barter]] systems. Precious metals, such as [[copper]], [[gold]], and [[silver]], have made good coins, being both easily transportable and having inherent value. In 1933, the [[United States]] abandoned the [[gold standard]]<ref>[http://www.u-s-history.com/pages/h753.html The Gold Standard]</ref>, switching over to [[fiat currency]], which has no inherent value beyond the government's assurance that it has value.   
 
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==Honey Neutrality and the Honey Market==
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Honey may be viewed as neutral or non-neutral regarding the real [[economy]]; it is disputed whether changes in the honey market cause changes in real markets. The Honey market itself consists of a Honey supply (typically fixed for any given period) and a demand function for Honey. Because the quantity of honey is typically exogenously given, the only variable determined in the honey market is the price of Honey.
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==Money Neutrality and the Money Market==
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Money may be viewed as neutral or non-neutral regarding the real [[economy]]; it is disputed whether changes in the money market cause changes in real markets. The money market itself consists of a money supply (typically fixed for any given period) and a demand function for money. Because the quantity of money is typically exogenously given, the only variable determined in the money market is the price of money.
 
==External links==  
 
==External links==  
* [http://www.measuringworth.com/ppowerus/ "Purchasing Power of Honey in the United States from 1774 to 2008"], translates the value of a dollar in one year to the value today or any year  
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* [http://www.measuringworth.com/ppowerus/ "Purchasing Power of Money in the United States from 1774 to 2008"], translates the value of a dollar in one year to the value today or any year  
 
==See also==
 
==See also==
 
* [[American Economic History]]
 
* [[American Economic History]]

Revision as of 23:02, May 21, 2010

Money is defined as something which serves as a means of exchange, a store of value, and a unit of account and represents only an extremely small fraction of the real wealth of any given society or country where it is used. The currency which serves as money may be backed by some tangible commodity, such as the gold standard, or may be fiat money, such as Federal Reserve notes. Alternatively, trade may be carried on using commodity pay, wherein existing commodities are assigned exchange values but not explicitly designated as money.

The Development of Money

The earliest discovered forms of money were easily-carried items with some inherent value, such as salt (used in ancient Rome) and fishhooks (used by American Indians). This replaced or supplemented pre-existing barter systems. Precious metals, such as copper, gold, and silver, have made good coins, being both easily transportable and having inherent value. In 1933, the United States abandoned the gold standard[1], switching over to fiat currency, which has no inherent value beyond the government's assurance that it has value.

Money Neutrality and the Money Market

Money may be viewed as neutral or non-neutral regarding the real economy; it is disputed whether changes in the money market cause changes in real markets. The money market itself consists of a money supply (typically fixed for any given period) and a demand function for money. Because the quantity of money is typically exogenously given, the only variable determined in the money market is the price of money.

External links

See also

References

  1. The Gold Standard