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 containing the words Medium Of Exchange, medium of, medium and/or 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)
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—Stanley I. Greenspan (20th century)