medium of exchange

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To that end, the second part of the regression theorem only explains the genesis of a new money where none existed before It explicates how a barter economy--where all economic calculation is conducted ordinally--becomes a monetary economy in which calculation is performed cardinally It should not be interpreted to mean that once a calculational framework in terms of money prices is established, that all future media of exchange (or monies) within that economy must arise from having a prior non-monetary use.
It would not, however, be the first non-fiat medium of exchange to arise this way For example, in Argentina during the recession and financial crisis of the early 2000s, privately-issued media of exchange circulated widely as a means of facilitating commercial interaction.
Indeed, if alternative media of exchange were permitted, there would be nothing objectively illicit in anyone attempting to produce, and use, purely paper money and devaluing it to zero.
This would not be the case under the original commodity-based system, where it was the government's monopoly of the mints, and not the outlawing of competing media of exchange, which constituted the violent aspect of the robbery.
There is no legal tender provision in the scheme and it does not require convertibility of media of exchange into the medium of account.
to issue media of exchange that are liquid enough compared to cash and coins, dominate their rate of return and exhibit a higher degree of price stability than current units of account managed by central banks.
would have to earn their reputation as reliable media of exchange to
Furthermore, most studies find a remarkably low substitutability between currency and transactions deposits, suggesting that these alternative media of exchange are held for quite different reasons.