History
Bruno Hildebrand divide the steps of ways to trade :
1. Barter
2.
Money 3.
Credit
Definition
1. Roberson = something that generally accepted to pay things
2. R.S. Sayens = something that generally accepted to pay debts
3. A.C. Pigon = something that used as an exchange medium
4. Rolling Thomas = something that generally accepted to pay things and debts
Function
1. Medium of exchange
2. Unit of account
3. Means of payment = to pay
4. Store of value = to save
5. Standard of different payment = standard of paying debts
6. Preindicator = show price
Terms
1. Acceptability = acceptable
2. Portability = easy to bring everywhere
3. Durability = durable
4. Uniformity = has one quality of paper
5. Divisibility = dividable
6. Stability of value
Theories
1. Quantity Theory of
Money by Irving Fisher
M.V = P.T
M = stock of money
V = velocity of circulation of money
P = price level
T = amount of transactions carried out using money
2. Theory of Metalism
a. Single Standard = 1 country 1 metal
b. Twin Standard = 1 country 2 metal
3. Gresham's Theory
"Bad Money always drives out good money"