The previous article discussed the properties of good money. In this article, we’ll explore the dangers of violating the property of scarcity of a monetary good. We examine historical examples of currencies that were subjected to such a practice and the devastating consequences that followed. From hyperinflation and economic collapse to social unrest and political …
1.5 Violating Scarcity: the Price of Unlimited Supply Read More »
The value of an item is determined by its utility or usefulness to an individual.1,2 Contrary to this, something like gold has very limited practical uses. Despite being primarily used in niche industries like electronics and jewellery, gold commands a high value and was regarded as global money. On the other hand, copper, which is …
Money is often taken for granted as a part of our daily lives, but it is important to remember that it did not always exist in its current form. The journey from a simple collectible item to a widely accepted unit of account is a complex one. Before a good can be adopted as money, …
We discussed why trade was necessary in our previous article. Here we’ll cover trade in its most primitive form, the bartering system, and how money was born out of necessity. Bartering is a method of exchange that relies on the direct trade of goods and services rather than the use of money. It has been used …
The origins of trading appear to have no real beginning and seemingly no real end. Without it, our society, as a whole, would not advance at the pace it has. The story of trade is a fascinating one that spans thousands of years and touches every corner of the globe. In more recent times, the …