tag:blogger.com,1999:blog-7520310366597866036.post5305139710238621188..comments2024-02-21T02:24:27.384-08:00Comments on Necessary Facts: Money as a Crusoe ConceptMichael E. Marottahttp://www.blogger.com/profile/14402515044482988601noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7520310366597866036.post-89673152937061511792011-09-15T18:45:27.314-07:002011-09-15T18:45:27.314-07:00I think that before the "money" stage, t...I think that before the "money" stage, there was a previous invention, the exchange of gifts. At first, it might have been that you offered what was valuable to you; eventually, you offered what was valued highly by the recipient. Stone Glasgow wrote, "The old story about the problems of barter exchange are a fantasy." I agree. "I have apples but do not need your eggs, so we will invent money" is not supported by historical fact. Wine was both produced locally and also traded at import and export in the Greek world. In short, anything different had a higher value.Michael E. Marottahttps://www.blogger.com/profile/14402515044482988601noreply@blogger.comtag:blogger.com,1999:blog-7520310366597866036.post-4454999352634758822011-08-24T16:34:36.114-07:002011-08-24T16:34:36.114-07:00I think your explanation of money for a man alone ...I think your explanation of money for a man alone on an island is quite good, but I don't understand this statement:<br /><br />"The origin of money is in ritual gift exchange, in peace-making, amelioration, and friendship."<br /><br />Money always exists in any market. Money is simply the assets that are most liquid, durable, divisible, and most easily transported. In the past, each market chose myriad assets as the "money," of the local marketplace; tea leaves in China and tobacco in the American colonies.<br /><br />That is where the word "currency" comes from. In the past merchants might travel to a new marketplace and ask what the "most current" merchandise in use was at that time; which assets have the most currency, or liquidity, or tradability.<br /><br />Money is always there. The old story about the problems of barter exchange are a fantasy. Merchants will always use the most suitable asset as a medium of exchange, unit of account, and perhaps store of value.Stone Glasgowhttps://www.blogger.com/profile/00545401735030232324noreply@blogger.com