- 533 Downloads
A commodity is an object that is intrinsically useful as an input to production or consumption. A medium of exchange is an object that is generally accepted as final payment during or after an exchange transaction, even though the agent accepting it (the seller) does not necessarily consume the object or any service flow from it. Money is the collection of objects that are used as media of exchange. Commodity money is a medium of exchange that may become (or be transformed into) a commodity, useful in production or consumption. This is in contrast to fiat money, which is intrinsically useless.
KeywordsExchange Rate Monetary Policy Central Bank Relative Price Monetary Authority
Unable to display preview. Download preview PDF.
- Bordo, M. and Kydland, F. 1996. The gold standard as a commitment mechanism. In Modern Perspectives on the Gold Standard, ed. T. Bayoumi, B. Eichengreen and M. Taylor. Cambridge: Cambridge University Press.Google Scholar
- Luschin von Ebengreuth, A. 1926. Allgemeine Münzkunde und Geldgeschichte des Mittelalters und der neueren Zeit. Munich: R. Oldenbourg.Google Scholar
- Redish, A. 2000. Bimetallism: An Economic and Historical Analysis. Cambridge: Cambridge University Press.Google Scholar
- Williams, J., ed. 1997. Money: A History. New York: St Martin’s Press.Google Scholar