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)
“All propaganda or popularization involves a putting of the complex into the simple, but such a move is instantly deconstructive. For if the complex can be put into the simple, then it cannot be as complex as it seemed in the first place; and if the simple can be an adequate medium of such complexity, then it cannot after all be as simple as all that.”
—Terry Eagleton (b. 1943)
“A healthy soul stands united with the Just and the True, as the magnet arranges itself with the pole, so that he stands to all beholders like a transparent object betwixt them and the sun, and whoso journeys towards the sun, journeys towards that person. He is thus the medium of the highest influence to all who are not on the same level.”
—Ralph Waldo Emerson (1803–1882)
“I know nothing which life has to offer so satisfying as the profound good understanding, which can subsist, after much exchange of good offices, between two virtuous men, each of whom is sure of himself, and sure of his friend. It is a happiness which postpones all other gratifications, and makes politics, and commerce, and churches, cheap.”
—Ralph Waldo Emerson (1803–1882)