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Right, but people who get .ad that banks create "money" don't understand that "money" is not the same as "currency". Money is literally defined simply as "curr
by sukilot 6y ago
Right, but people who get .ad that banks create "money" don't understand that "money" is not the same as "currency".
Money is literally defined simply as "currency plus bank accounts" so obviously funding a bank account creates "money".
Your post gets into the velocity and momentum of money, which is yet another concept.
- baobabKoodaa 6y agoNo, there is no single, accepted definition of money. Money is not "literally defined as..." anything. For example, if you look at Wikipedia definitions for money, you will find multiple different definitions. The commonly used definitions seem to vary a lot by economic area.
- deleted 6y ago[deleted]
- jkhdigital 6y agoNo, there is a definition: Money is a commonly accepted medium of exchange. The problem is not that there is no accepted definition of money, but rather that this definition actually encompasses a very broad class of assets, each of which has some interesting and unique characteristics that can be defined independently of the definition of money. Talking about "money" by itself is often not specific or helpful enough for the subject at hand. Mises does an excellent job of defining a taxonomy for money and money substitutes in his book The Theory of Money and Credit.
- QuesnayJr 6y agoI think it's better to say that the boundary of "money" is a bit vague, and things vary in their "moneyness". So sometimes a broad definition is more appropriate, and sometimes a narrow one is more appropriate.