The "What is Money?" Show cover image

How to Think About the Economy with Per Bylund (WiM248)

The "What is Money?" Show

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How to Convert Ordinal Preferences Into Units of Value

The pricing system gets us from the domain of value to the domain of units, I guess. We can compare satisfaction for example, that we like oranges more than apples and we like pairs more than either. This is just getting everyone's preferences focused on one through one medium and then just the buying and selling converts it all into a number. And so, how is that transformation possible? Well, we'll sit on that. On a whim, I'm jumping into chapter six, which is on value money and price,. But I do want to try to go back to some stuff earlier.

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