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What is money? Hi, I am Joeri, and that is the question that one of the most intense debates in economics today centres around. In this debate there are basically two positions. On the one hand, proponents of the commodity theory of money argue that only money that is made from a commodity like gold, silver or even cigarettes, is real money because these have intrinsic value. On the other side of the argument, proponents of the credit theory of money argue that it is pretty silly to tie economies to shiny rocks or other commodities and that credit money issued by, for example, central banks or private banks is not only the most efficient form of money but also the original form of money. But, who is right? Well. somewhat anticlimactically, I think both are correct given that there are clear examples of both commodities and credit s that have been used as stores of value, units of account, and mediums of exchange. So, then the real question becomes, who is more correct? One way to an
