Lecture 17
MONEY


1. Barter


2. Functions of money

  1. Medium of exchange:
    Exchange goods for money

  2. Unit of account:
    Standard unit for quoting prices

  3. Store of value:
    Can be stored over time to be used later


3. Fiat money


4. Liquidity


5. Measuring the stock of money


5.1 M1 and M2: Everything changed on April 24, 2020