MoneyCLASS - 1 Money and the Payments System...

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Unformatted text preview: 1 Money and the Payments System Pythonmoneysong The History of money What’s Doing in the News? Course Issues ¡ Questions, Problems? - CHAT ROOMS: ¡ Problems and what,how,when, ¡ weeks1-5, students only, etc ¡ End of chapter solutions - maybe ¡ Late HW –NOT (except for 1) – all due by MON ¡ Missed Class – do not email unless athletics, university 3 sponsored event, sustained problem ¡ Online system (phooey) ¡ Clickers – don’t worry about registration yet ¡ HW – ATTACHED GRAPHS --careful ¡ Slides posted – Sunday evening or sooner ¡ Next ASSIGNMENT/HW – generally by Wednesday ¡ LRC – extra credit – see me, online form 2 What is Money? ¡ Medium of exchange – key ¢ Acceptability-widely accepted ¡ Standardized, divisible, high value/weight, ¡ Homogenous, portable, durable ¡ unit of account ¡ store of value (standard deferred …) ¡ Versus Barter ¢ High transactions costs, no financial system ¡ Double coincidence, Huge number of prices Advantages of Monetary Economy? ¡ Lowers Information and transactions costs ¢ No need for double coincidence of barter ¢ One price for each item Improves Economic Efficiency ¡ Improves Economic Efficiency ¢ Allows specialization ¢ Division of labor ¡ Development of financial system ¢ Separation between Saving and Investment ¢ Increased Investment What makes a dollar valuable? Features? ¡ Acceptability ¢ Legal tender – debt only ¢ Foreign holders ¡ Features ¡ Features ¢ Paper, engraving, imagery ¢ Threads, ink ¢ Blind? ¢ size 3 Money, Wealth, and Income?...
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This note was uploaded on 02/29/2012 for the course ECONOMICS 220:301 taught by Professor Sheflin during the Fall '09 term at Rutgers.

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MoneyCLASS - 1 Money and the Payments System...

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