CAS EC 102 Lecture Notes - Lecture 25: Danone, Barter

• School: Boston University
• Department: Economics
• Course: CAS EC 102
• Professor: Jay Zagorsky

Document Summary

Nigeria grapples with abrupt end to rapid growth . Money takes faith it"s accepted for transactions. Fable money is backed by gold (not true) Indian promise must get coins in exchange for paper $ It increases production because it eliminates barter (creates time) 1: allows specialization (specialists in barter economies fail, provides a standard of value. It"s a medium of exchange (it doesn"t have to be money) Yap stones pay in huge stone wheels. It"s a unit of account (denominator of quoting prices) It"s a store of value (transfers purchasing power from present to future) Near money = something that passes all these tests in certain circumstances. Credit cards are not money because they incur debt. Assets = anything that belong to you which make you wealthier/richer (ie diamonds, cash) Liabilities/ debts = anything that belong to you that make you poorer/ less rich (ie student loans) Not easily degradable or deteriorates (lasts long, made of cotton/linen)