ECO 1001 Lecture Notes - Lecture 8: Transaction Account, Barter, Money Supply

• School: St. John's University
• Department: ECO - ECONOMICS
• Course: ECO 1001
• Professor: Tomic

Document Summary

Chapter 10 the money supply and the federal reserve system. Oldest method of trading trading without money. Both parties must have wants: k(cid:374)o(cid:449)(cid:374) as (cid:862)dou(cid:271)le (cid:272)oi(cid:374)(cid:272)ide(cid:374)(cid:272)e of (cid:449)a(cid:374)ts(cid:863, means you would have to take the time to find someone who has what you want and also wants what you have. Easier to barter with simple (non-specialized) goods. Pri(cid:272)e is depe(cid:374)de(cid:374)t upo(cid:374) : time taken to produce good, past and present supply and demand, negotiations between two parties. With money, the need to barter is less, but it is still present. High inflation), there is a resurgence of bartering: lengthy negotiations, doubt of quality. Ir does(cid:374)"t like to see (cid:271)arteri(cid:374)g (cid:271)e(cid:272)ause (cid:271)(cid:455) (cid:271)arteri(cid:374)g o(cid:374)e (cid:272)a(cid:374) a(cid:448)oid pa(cid:455)i(cid:374)g taxes. How did the economic systems switch from bartering to money. Be(cid:272)ause so (cid:373)a(cid:374)(cid:455) (cid:272)o(cid:373)(cid:373)u(cid:374)ities a(cid:272)ross the glo(cid:271)e tra(cid:374)sitio(cid:374)ed to (cid:373)o(cid:374)e(cid:455) o(cid:374)e k(cid:374)o(cid:449)s there (cid:373)ust"(cid:448)e been significant benefits: benefits include. We can exchange all things for one item money.