BSB113 Lecture Notes - Lecture 10: Demand Deposit, Money Supply, Deflation
Document Summary
The english economist william stanley jevons described a world tour during the 1880s by a. One stop on the tour was a theatre in the society islands, part of french polynesia in the south pacific. She performed for her usual fee, which was one-third of the receipts. This turned out to be three pigs, 23 turkeys, 44 chickens, 5000 coconuts and considerable quantities of bananas, lemons, and oranges". She estimated that all of this would have had a value in france of 4k francs. Mademoiselle could not consume any considerable portion of the receipts herself, it became necessary in the meantime to feed the pigs and poultry with the fruit. " did the goods. Money"s functions: medium of exchange (when sellers are willing to accept it in exchange for g/s, unit of account (only one used for exchange, standard of deferred payment, store of value (money is better than inventories)
