Money: Sound And Unsound And The Trouble Ahead

“Money” challenged – and often confounded – economic thinkers for centuries. It functions as both as a “medium of exchange” and “unit of account.” Simple enough. Too often the focus has been how to use money to stimulate economic activity and achieve political gains. From my perspective, money’s importance lies with its fundamental roles as a “Store of Value” and the bedrock of financial systems. Unsound money has been a root cause of a lot of turmoil throughout history – including the monetary fiasco that collapsed in 2008. Yet concerns for the soundness of contemporary “money” these days are viewed as hopelessly archaic.