ECON 304 Lecture Notes - Barter, Market Economy, Commodity Money
21 Apr 2013
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3. 2 medium of exchange in an olg model . 3. 4 optimal allocation under a stationary equilibrium . 4. 1 money as a store of value . In this lecture, we explore the properties, functions and importance of money. Money as we will see is a special commodity that plays a very important role in the economy. We begin by de ning what money is, then we explain in details (using models) the functions of money and we conclude by providing an overview of how money is measured and the di erent monetary standards across time. In subsequent lectures, we will look at the importance of money and its relationship with output and in ation in the short and long-run. Money can mean di erent things to di erent people. Many people use the term money to describe wealth, income or how much one earns per year. Economists have a very di erent view of what money is.
