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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The Origins of Money

I'm really amazed when I think about the data compression that's occurring and that one price. It seems like almost the entirety of production and consumption decisions related to a commodity across most of history should be contained in that price. This means money works because we recognize it as such and therefore accept it in exchange. Money is largely a self-reinforcing social institution. But when we already have money, it will continue to be money for as long as people consider it to be money.

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