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People say that Warren Buffet has lots of money, but I wouldn't call shares money either. EDIT: I'd say that in common parlence bank accounts are called 'money
by OscarCunningham 4y ago
People say that Warren Buffet has lots of money, but I wouldn't call shares money either.
EDIT: I'd say that in common parlence bank accounts are called 'money' because they're a claim on money (1) that the bank has to pay out on demand. But if you're calculating an aggregate then you shouldn't include both the claim and the thing it's a claim on.
- JumpCrisscross 4y ago> if you're calculating an aggregate then you shouldn't include both the claim and the thing it's a claim on It's all claims. We count both. But other than for international finance, high-powered money is irrelevant.
- lottin 4y ago> if you're calculating an aggregate then you shouldn't include both the claim and the thing it's a claim on This is why M1, which includes bank deposits, does not include bank reserves.