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> Currencies aren't like some weird subset of commodities. Actually, currencies are considered to be the ultimate commodity. They don't degrade, they're 100%
by Plasmoid 13y ago
> Currencies aren't like some weird subset of commodities.
Actually, currencies are considered to be the ultimate commodity. They don't degrade, they're 100% fungible, and they're instantly moveable worldwide. They're even susceptible to runs and shortages.
Think of it this way, what is the price of money? Is it $1 for a sandwich or 1 sandwich for a dollar? In this way, money has a price. So if the price of money goes up, by say everyone worrying that they'll lose their job and not spending anything, "prices" for goods will drop. Conversely, you can get runs when people think their money will lose value, eg during a war or disaster.