What Is Money—and Who Decides How Much Exists?
We measure liquid in litres, distance in metres, weight in kilograms and time in hours. Money also gives us a common way to express the value of goods and services. But unlike those other units, it can also be used to exchange goods, store purchasing power and settle debts. Money does not measure the intrinsic value of something. It expresses its monetary value, which can change with supply, demand, scarcity and market conditions. A house does not physically change when its price rises from ₦50 million to ₦100 million; its monetary valuation changes. Money is not wealth itself. It is a way to express, compare, transfer and exchange economic value. That raises a bigger question: who creates money, how does it enter circulation, and what determines how much should exist in an economy? These questions lead into the economics of money creation, credit supply and monetary systems—an area of economics I find especially interesting.
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