2min snip

"Upstream" with Erik Torenberg cover image

E46: Lyn Alden on How Money Works

"Upstream" with Erik Torenberg

NOTE

Synthesizing Commodity Money and Credit Money Arguments

The underlying synthesis of different economic schools' discussions on money reveals that various monetary systems converge as ledger money. Transactions can be facilitated by either deferring them through time via informal or formal favor exchanges, or by using a widely desirable unit for all transactions. People tend to gravitate towards storing surpluses in a scarce, divisible, portable unit with superior monetary attributes. The siloed debates on whether money should be commodity-based or credit-based fail to consider the broader perspective that encompasses both these aspects within the concept of ledger money.

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