The Local Currency Area PDF Download

Author: Charles Moore
Publisher: charles
ISBN:
Category : Business & Economics
Languages : en
Pages :

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Book Description
If we turn to the questions “what is money and what not money is?” and “what is barter and what is not barter?” economists lead us down a path to incoherence and useless definitions. Barter is probably the most misunderstood economic function on the planet. The outcome is that economists have a broad definition of money and a narrow definition of barter, so broad and so narrow, respectively, that they are useless. They also lead to incoherent and inconsistent outcomes. Hence the analysis of money, proceeds from the principle that all essential phenomena of economic life are capable of being described in terms of goods and services, of decisions about them and of relations between them. Money spontaneously enters the picture in order to mediate transactions via its existence as a numeraire of exchange value, it does not affect the economic process of trade. It is man’s varying skills and different needs that prompted the exchange of goods and services. Thus came the need for a form of valuation that would determine how much or how many one kind of commodity should be exchanged with another good of a different quantity (or mass and volume). This ancient predicament of setting fair trade values gave birth to crude valuation tools and solutions, like counting and weighing. Thus the spontaneous emission of a numeraire to mediate barter based instantaneous exchanges of goods and services was observed. Its existence is a natural by-product of trade, it is not the creation of man or law, money is born solely from trade, and hence without trade money cannot exist. All instantaneous barter based exchanges, emit monetary exchange value. This foundational understanding, addresses the centauries of incoherent inconsistencies of economics.