In the previous post, I discussed the gold standard’s phase-out. When we used commodity money, we developed a medium of account (MoA) valid for both gold and cash. This could only occur if one was fixed to the other. Silver was phased out in the nineteenth century, and gold was phased out in 1968, following […]
https://www.themoneymischief.com/back-to-basics-pt-2-its-all-about-appearances/
In this and the next few posts, I will examine how money determines the price level. It seems quite appropriate to start with the silver standard first. Let’s start by assuming that our unit of account is a pound of silver or “PS” for short. We can define money using various criteria, including the medium […]
https://www.themoneymischief.com/back-to-basics-pt-1/