Medium of Exchange

A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system.

By contrast, as William Stanley Jevons argued, in a barter system there must be a coincidence of wants before two people can trade – one must want exactly what the other has to offer, when and where it is offered, so that the exchange can occur. A medium of exchange permits the value of goods to be assessed and rendered in terms of the intermediary, most often, a form of money widely accepted to buy any other good.

Read more about Medium Of Exchange:  Definition, Requisites Needed For A Medium of Exchange, Bibliography

Famous quotes related to medium of exchange:

    As a medium of exchange,... worrying regulates intimacy, and it is often an appropriate response to ordinary demands that begin to feel excessive. But from a modernized Freudian view, worrying—as a reflex response to demand—never puts the self or the objects of its interest into question, and that is precisely its function in psychic life. It domesticates self-doubt.
    Adam Phillips, British child psychoanalyst. ‘Worrying and Its Discontents,’ in On Kissing, Tickling, and Being Bored, p. 58, Harvard University Press (1993)