With inequality peaking and national debt continuing to rise, money appears to be a death trap. While it may exacerbate inequality and generate financial crises, money is a necessary medium of exchange. However, the question can be raised: Why not the barter system? Money plays two roles in the economy – a static role and a dynamic role. In its static role, the importance of money lies in removing the difficulties of barter.
By serving as a medium of exchange, money removes the need for double coincidence of wants and the inconveniences and difficulties associated with barter. The difficulty in barter is to find two people whose properties mutually suit each other's wants. There may be many people wanting, and many possessing those things wanted; but to barter there must be a double coincidence, which will seldom happen. Money as a medium of exchange breaks up the single transactions of barter into separate transactions of sales and purchases, thereby eliminating the double coincidence of wants.
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...my. Money plays a significant role in the daily life of a person whether he or she is a consumer, a producer, a businessman, a student, or a politician. Although a bartering economy once existed, money has since come into play – and money could not be of more relevance. Money acts in both static and dynamic roles. Both these roles proposed that money perform as a medium of exchange. With the sustainability and positivity of a economy reliant on money, using money as a unifying unit serves an obvious and preferable purpose. However, money does bring about political and economical difficulties; and with difficulties such as inequality and financial crises, government regulation is inevitable and preferable. Yet, government regulation of money should go now further than the betterment national economic standing, lest corruption infiltrate the good monetarism can serve.
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