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David Andolfatto
@dandolfa
Money is a medium of exchange & a store of value. Everyone agrees that as a MoE, money facilitates exchange. But some claim that as a SoV, money might have the opposite effect. What assumptions are needed to produce this result? Plausible? If yes, implications for policy? 👇
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David Andolfatto
@dandolfa
For anyone interested, I've provided some theoretical foundations for "hot money" policy (cash transfers w/ expiration date) research.stlouisfed.org/wp/more/2020-0 Formalizes what I described in my blog post stlouisfed.org/on-the-economy Also a short podcast interview here: stlouisfed.org/timely-topics/
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George Selgin
@GeorgeSelgin
The idea that money is distinguished by its capacity to serve as an SofV is false. The best SofVs are typically not MofEs, and when these differ its the MofEs that are regarded as money. 2/
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George Selgin
@GeorgeSelgin
Suppose I _Defined" a car as (1) a means of transportation, and (2) a store of value. That double-barrelled definition would enhance our understanding of cars in the same way that the common double (if not triple) barrel definition of money has enhanced our understanding of it 3/
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zkashmoney🦇🔊🛡
@GoGetItMan28
one of the big issues in today’s world is over consumption, money that is both a sov and good moe incentives saving and not over consuming on unnecessary shit yet giving ppl the freedom to do wtv tf they want
phil
@nonoumenon
Right, every good/asset is a store of value, but that doesn't explain why they are valued. Might we instead say that money is (often) a safe store of value, i.e., a safe asset? And that this explains why it is valued?
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Brad
@BculkinBrad
Any discussion/definition of money devoid of understanding/including emergent properties of complex systems and network effects is doomed to gross oversimplification. It will be so muddled you’ll say, “It’s not even wrong”, ie you won’t know how to even begin critiquing it.