Characteristics of money

pmbug

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I used to have a link to a .PDF produced by the Philadelphia Fed that talked about the characteristics of money, but I lost it some time ago. It's fine to try and educate people about ancient wisdom that people understood for millennia, but if it comes from goldbug sites, Joe Sixpack doesn't give it too much credence. So it's nice when you can cite The Federal Reserve saying it...

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Money functions as (1) a medium of exchange, (2) a unit of account and (3) a store of value.
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But what features does your money need? Six characteristics have been identified: Money must be durable, portable, divisible, scarce, uniform and acceptable.
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https://www.dallasfed.org/~/media/documents/educate/everyday/money.pdf

h/t: https://lonestarwhitehouse.blogspot.com/2019/04/the-dallas-federal-reserve-explains.html

Also, St. Louis Fed mentions it too:

https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-9-functions-of-money
 

rblong2us

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I reckon we havent had money for a long time.
It was quietly phased out and replaced by a belief system that the banksters invented and controlled. Credit based fiat.
If they werent so greedy it could have lasted a thousand years .......
 

pmbug

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If they werent so greedy it could have lasted a thousand years .......
I'm not so sure about that. The primary justification for abandoning sound money is to allow governments flexibility with (over)spending. Once you give them that means, there isn't any sufficient force to constrain them from malfeasance and we get what we get. I think that historically, the average lifespan of a fiat currency is typically way less than 100 years:

https://georgewashington2.blogspot.com/2011/08/average-life-expectancy-for-fiat.html
 
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