L'argent est ce que l'argent fait : sur la nature et la définition de l'argent

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Money is known to most of the people nowadays. In common language, people often use this term. Money is one of these notions that appear perfectly clear when it is heard or employed in a common phrase. Nevertheless, when taken alone (isolated), the concept of money could be quite impossible to explain. However if the task is to define money, people become more perplex and it is difficult to get an answer. As money is a word that everybody knows and uses, it is interesting and challenging to examine it.

This essay will aim and find a sense (definition) for money and make the concept of it more comprehensible. The question focuses on: Why money is used and what functions it performs?

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[...] This essay will aim and find a sense (definition) for money and make the concept of it more comprehensible. The question focuses on: Why money is used and what functions it performs? In the first part will be devoted to the status of money. Different of its aspects will be introduced commencing by its economic and social aspects. Hicks said “money is defined by its functions ( ) and the functions of money are threefold to act: as a unit of account, as a mean of payment, as a store of value.” In the classical theory developed by David Hume, Adam Smith, Irvin Fisher, money was demanded and it derived its importance from serving as a medium of exchange[1]. [...]

[...] It varies inversely with the length of transaction period. Exchanges imply the necessity of the so called “double coincidence”. In a bilateral situation, each trading side searches a partner who would be willing both to buy their products and ready to sell the desired one. J.S. Mill (1848) pointed out that people are forced to spend a large amount of their time and energy in shopping about for exchange partners whose desires are such as to satisfy the condition, necessary for any trade to be made[4]. [...]

[...] The transmission of economic information is transparent for individuals. o Money as a unit of contract. “Whenever a purchase is made without paying cash, the purchaser is quoted a money price because money serves as unit of account, but also agrees to pay later the quoted amount of money.” As a unit of account money is special. The value of money can flutuate from year to year. That is the reason why inflation is high and costly[21].The common measure of value can be anything: gold, onions, wheat not necessarily a currency. [...]

[...] Ottavj (2003), Théorie Monétaire, Edition Synonyme-SOR, p Mervyn K. Lewis and Paul D. Mizen (2000), Monetary Economics, Oxford University Press, pp T. Bennett, McCallum (1989), Monetary Economics: theory and policy, New York Ross M. (2006), Commodity Money Equilibrium in the Walrasian Trading Post Model, Discussion Paper W. T. Newlyn and R. P. Bootle (1978), Theory of money, 3rd edition, Clarendon Press, Oxford, p.5 C. Ottavj (2003), Théorie Monétaire, Edition Synonyme-SOR, p ibid pp. 10-11 D. G. Pierce, P. [...]

[...] Moreover, around the world, it is readily and usable at any time. Money is immediately available and has no risk to lose its capital Conclusion To conclude, most of the time, money is defined by its three main functions. As a medium of exchange money solves the problem of the “double coincidence wants” and in this way facilitates exchanges by reducing exchange costs. For the same good, demand and supply are reduced. In the meanwhile, the function of unit of account enables people to compare prices and become rational individuals through information they get. [...]