Textbook Notes (367,790)
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ECN 204 (281)
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Chapter 10

Chapter 10 - The Monetary System
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Department
Economics
Course
ECN 204
Professor
Eric Kam
Semester
Winter

Description
thWednesday March 14 2012 Chapter 10 The Monetary System What Money is and Why Its Important without money trade would require barter the exchange of one good or service for another every transaction would require a double coincidence of wants the unlikely occurrence that two people each have a good the other wantsSimply means that two people have to want each others stuffTo ensure a double coincidence of wants you introduceMost people would have to spend time searching for others to trade witha huge waste of resources this searching is unnecessary with money the set of assets that people regularly use to buy gs goods and services from other people money is nothing money is everythinganything Example Im an economics professor but Im a consumer tooSuppose I want to go out for a beerUnder a barter system I would have to search for a bartender that was willing to give me a beer in exchange for a lecture on economicsAs you might imagine I would have to spend a LOT of time searchingOn the plus side this would prevent me from becoming an alcoholic But thanks to money I can go directly to my favorite pub and get a cold beer the bartender doesnt have
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