Tuesday I listened to a speaker a few days ago explain that Gold was money because it was ‘the most marketable good’ (the preferred trading good in the marketplace). He then explained that silver was what was actually used as most people didn’t own Gold and it was too valuable for marketplace trades. If Menger’s theory that money is so by virtue of the fact that it is … [Read more...]
Money is not a Good
Friday I just read a piece on the monetary metals by a writer that I hugely respect. In this rare instance, he is wrong. He describes Gold as a good with a declining marginal utility. Many important new understandings emerged from Dawn of Gold. One of them (Chapter 8 – The Measure and the Measured) was that money is not a good. The logic is quite conclusive. Menger’s … [Read more...]