Bankless 2 - The Evolution of Monetary Policy
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Mar 9, 2020 Explore the fascinating evolution of money, from historical commodities like gold to modern fiat systems. Delve into the contrasting economic theories of the Austrians and Keynesians, highlighting their differing views on monetary policy. Discover the revolutionary shift brought by Bitcoin and Ethereum, focusing on their unique monetary policies. Dive into the implications of central banks versus cryptocurrency as financial systems evolve. Finally, learn about Ethereum's transition from proof of work to proof of stake and how it impacts accessibility and participation.
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What is Money?
- Money emerges from the need to exchange goods and services.
- It acts as a common, agreeable intermediary facilitating trade.
Qualities of Money
- Money requires durability, scarcity, and fungibility.
- These properties enable it to serve as a reliable store of value and unit of account.
Gresham's Law
- Gresham's Law states that good money drives out bad money.
- People hoard better money and spend inferior money, illustrating money's competitive nature.