Money is the foundation stone in the political framework of a civilized community. . . . But stable community requires a stable currency.
—LEWIS E. LEHRMAN, Money, Gold, and History
WHAT IS MONEY?
Millions of words have been written attempting to answer this question. Most of them have decreased, rather than increased, understanding. The answer is simple. Money has three roles in an economy:
1. It is a measure of value.
2. It is an instrument of trust that permits transactions to take place between strangers.
3. It provides a system of communication throughout a society.
Measurement. Trust. Communication. In order to function in these roles, money, above all, must be stable. When it isn’t, it becomes ...