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What *Is* Money?

“Throughout history, and around the world, people have just up and decided that all sorts of things are money. Shells, barley, cows, big rocks. So, what makes money, money?” [Click here to watch]

A pretty interesting – and short – video on what, exactly, money IS. In plain English, and with some interesting examples to keep our attention (well, as interesting as an economist can make it, anyways ;)) Here are three of the elements that help make money, money:

  1. Store of value
  2. Unit of account
  3. Medium of exchange

Which is amazing that people used to use cows and big rocks as currency! But anyways, watch the vid – you’ll feel all kinds of smart afterwards. Courtesy of Derek Thompson & The Atlantic:

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