So You Want to Know About Economics

by Roopa Pai

it is trade that makes the world go round, not money! Money is just what is used to conduct a trade.

what is money? It is what we use to conduct trade in the modern world. Serious, well-informed Economics experts define it as ‘any item that is generally accepted as payment for goods and repayment of debts.’

Money’s a matter of functions four, A Medium, a Measure, a Standard, a Store.

Just like we have standard units to measure distance, time, weight, and temperature, ‘money’ is the standard unit we use to measure the ‘value’ of something. The more money you pay for something, the greater its ‘value’.

This whole idea of governments ‘letting go’ of control and allowing people themselves to decide what to produce and what price to sell it at is called ‘Laissez-faire Economics’.