ECON 001A Chapter Notes - Chapter 6: Transaction Cost, Barter, Externality
19 May 2020
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Polanyi: mainly talks about how money makes real commodities (land, labor, capital) into fictional things (paper money) which are numerous magnitudes used to compare supply and demand money defines a market system. Markets existed without currency where there is a market society, laws of. Market system fit and the economy controls politics. In this case, money is an excellent method of storing one"s surpluses. However, absence of currency doesn"t imply no market but instead isolation. Smith: need to barter came from local markets and division of labor implies need for trade. Polanyi: trade is a result of different locations/ specializations and allows people, if they want, to trade/ barter. Framework for analyzing economic organizations in history. The concept of the market was only introduced as of recently and thus research on a variety of economic forms over history are on the basis of no analytical content (or is biased with only a market view)
