Money Slides

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# Money

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## Defining Characteristics of Money

- Medium of exchange
- Store of value
- Unit of account

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## Forms of Money

- Commodity money
- Representations of that commodity:
    - Circulating private notes
    - commodity-backed paper currency
- Fiat currency
- Transactions Deposits
    - Checks, savings, digital currency...

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## Measures of the Money Supply

| | MB | M1 | M2 |
|:--|:-:|:-:|:-:|
| Reserve Balances         | ✅ |  |  |
| Currency in a bank vault | ✅ |  |  |
| Currency in my pocket    | ✅ | ✅ | ✅ |
| Checking accounts |  | ✅ | ✅ |
| Savings accounts |  | [Since May, 2020](https://fredblog.stlouisfed.org/2021/01/whats-behind-the-recent-surge-in-the-m1-money-supply/) | ✅ |
| Time deposits |  |  | ✅ |

For more details, take a look at this page from the Federal Reserve: 
[Money Stock Measures - H.6 Release](https://www.federalreserve.gov/releases/h6/current/default.htm)

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## Graph of Monetary Aggregates

[![FRED Graph of Money Stock measures.](https://fred.stlouisfed.org/graph/fredgraph.png?g=1vzEU)](https://fred.stlouisfed.org/graph/?g=1vzEU)

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## Barter tokens

![ancient barter tokens](/3102/img-money/barter.png)

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## Double Coincide of Wants

![diagram illustrating that three people might not have any pairwise trades to make](/3102/img-money/diagram.png)

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## Double Coincide of Wants

![diagram illustrating that one person might trade in goods they neither want nor produce](/3102/img-money/diagram2.png)

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## Hammurabi’s Code

![image of a clay tablet with caption: 1754 B.C. Babylonian Legal Code. Listed prices in shekels, which was a certain amount of barley.](/3102/img-money/ham.png)

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## Snails!

![test image, ignore the content](https://www.rmwinslow.com/3102/img-money-snails.webp)

Monetaria Moneta, the Money Cowrie. The shells of these snails were widely used as money.

Left: [Live money snail. CC-BY-SA-5 Philippe Bourjon.](https://commons.wikimedia.org/wiki/File:Monetaria_moneta_-_2.jpg)
Center: [Ancient Chinese Shell Money. CC-BY-SA-3 PHGCOM.](https://commons.wikimedia.org/wiki/File:Chinese_shell_money_16th_8th_century_BCE.jpg)
Right: [Lithograph of traders using shells. 1845](https://commons.wikimedia.org/wiki/File:A_print_from_1845_shows_cowry_shells_being_used_as_money_by_an_Arab_trader.jpg)

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## Knives and Spades

![ancient chinese spade and knife money, 650-400 BC, 400-300 BC](/3102/img-money/spade.png)

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## Coins!

![Three kinds of coins](/3102/img-money/coins.png)

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## Coins

![ancient lydian currency](/3102/img-money-lydia.webp)

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## Rai Stones

![micronesian rai stones](/3102/img-money/rai.png)

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## Other Commodity Money

![cigarettes, salt blocks, and beaver belts](/3102/img-money/beaver.png)

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## Fiat Money

![diagram showing trade with fiat money](/3102/img-money/diagram3.png)

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## Paper

![jiao zi with label: The world's first paper money. Around 1000 AD. Started as privately issued notes.](/3102/img-money/paper.png)

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## Paper

![Chinese paper money. In the 13th century, Marco Polo wrote about Chinese Fiat Currency. "How the Great Kaan Causeth the Bark of Trees, Made into something Like Paper, to Pass for Money All Over His Country](/3102/img-money/paper2.png)

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## Paper

![image of privately issued notes from sydney and delaware](/3102/img-money/paper3.png)

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## Paper

![comparison of US fifty dollar bill backed by gold to a fiat 50 dollar bill](/3102/img-money/paper4.png)

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## Transaction Accounts

![stock image of a check and a debit card](/3102/img-money/checks.png)

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## Transaction Accounts

![diagram from the federal reserve of the flow of checks](https://fraser.stlouisfed.org/files/docs/historical/frbsl_history/media/flow_of_checks_200_merged.jpg?)