Does Money Really Make the World Go Around?
In This Chapter
• Money as a medium of exchange
• Attributing value to money
• The role of the Federal Reserve in American banking
What is worth very little on its own but can be traded for almost anything in the world, no matter how valuable? Money. Money can be whatever people agree it should be—anything from sea shells to painted rocks to beads. If money can be anything, then can’t we just produce infinite amounts of it and buy our way to fantastic wealth? No; for though money can be anything, pumping out too much of it only does harm. In a global economy, countries wishing to participate must have sound money and manage it well. If they don’t, then nobody will accept it. So how do modern ...