2 ms·
This comment is a prime example of something that makes sense on the face of it because the rebuttal requires knowledge on how money actually works. For exampl
by scott_w 4y ago
This comment is a prime example of something that makes sense on the face of it because the rebuttal requires knowledge on how money actually works.
For example, you completely glossed over the fact most economists agree that, for money to have value, it needs to be a good:
1. Medium of exchange
2. Unit of account
3. Store of value
To achieve this, a currency needs a certain level of stability and to be accepted by the institutions you need to do business with i.e. governments. Money & Macro has some great videos on this topic. This one on China's attempt to replace the US Dollar as the reserve currency is a good starting point: https://www.youtube.com/watch?v=49iLl-V4xos&t=653s https://www.youtube.com/watch?v=49iLl-V4xos&t=653s
- jkhdigital 4y agoI’d say this is the high school textbook version of the story. Money is simply the “best” medium of exchange in a given context. Stable value and fungibility (“unit of account”) are attributes that make something better at this role, because it becomes suitable for a wider range of transactions across time and scale. Ludwig von Mises has a lot more to say about this.
- scott_w 4y ago> the rebuttal requires knowledge on how money actually works. I don't think we disagree at all. I'm not an economist or finance expert, after all ;-)