Tag Archives: ownership

Money as medium of exchange

One of the roles of money is to be a medium of exchange. This is usually explained in contrast to the barter system. Bartering is to exchange one type of good for another without the use of money. The problem usually pointed out is that a unit of one good is not equivalent to another unit of good. Clearly, trading a cow for a dog is not the same thing. And you may not want ten dogs for the one cow. Continue reading