#functions-of-money #globo-terraqueo-session #has-images #monetary-policy #money #reading-agustin-carsten
The most generic definition of money is that it is any generally accepted medium of exchange. A medium of exchange
is any asset that can be used to purchase goods and services or to repay debts. Money can thus eliminate the debilitating double coincidence of the “wants” problem that exists in a barter economy. When this medium of exchange exists, a farmer wishing to sell wheat for wine does not need to identify a wine producer in search of wheat. Instead, he can sell wheat to those who want wheat in exchange for money. The farmer can then exchange this money for wine with a wine producer, who in turn can exchange that money for the goods or services that she wants.