When one designates money function in the political economy the different forms of use, the money donate can. Generally one differentiates here between currency, value storage and value measuring function.

Currency function

Money is exchange and debt retirement means. By a currency one understands a medium, with which exchange procedures can be accomplished. Two forms can general be differentiated by exchange procedures:

directly: Well against property (ex.: Work against bread; Bread against clothes and culture)

indirectly: Well against money, money against property (ex.: Work against money, money against bread or clothes or culture etc.)

In an economy without generally accepted currency (e.g. Money) must be present for a successful transaction between two restaurant economics a double agreement of their exchange desires.

Example: A farmer would like to sell grain and needs tools. At the same time a craftsman would like his tools against meat exchanges. Between these two no trade will be able to take place, since the sales intention of the farmer does not agree with the purchase desire of the craftsman. Both will have to search probably for a long time, until they meet someone with appropriate transaction desires. Now if money comes into the play, this procedure is highly simplified: The farmer can be grain with third to sell and the received money with the craftsman against tool exchanges. The craftsman can buy with the received money with a fourth meat. There is thus only a simple agreement of the desires and the agreement necessary over the price.

Value storage function

Money is value storage means. In money the promise of an equivalent for other goods (goods or services) can be stored and be redeemed at other time and at other place. In the usually-used money form this is first unrestrictedly possible and puts so the basis for the money supply geldmengenvermehrung by interest. This characteristic is however problematic, because thus uncontrollable deflation or inflation can develop.

As value storage means the money rests and has not the function of an article of exchange.

A value storage means must be able to keep its value durably. Therefore nearly always imperishable goods were agreed upon as "“money"” (e.g. Gold, diamonds). The farmer in the economy without money would therefore so long be only able to exchange its grain against other goods until it is spoiled. Therefore it would be well advised to exchange its grain promptly against "“imperishable"” money. This is called also konsekutive value storage function. The independent, konstitutive, value storage function however designate the financial resources formation by accumulation, thus by keeping the money simply because of the value keeping.

Value measuring function

Money is wertmassstab. Money serves as comparison yardstick for the quantity of Lohnarbeit, goods and services, which can be and/or acquired thereby. The quantity money, which possesses someone, corresponds to the portion of the national product, which it can acquire, if it spends the money. The value of a monetary unit designation as purchasing power of the money.

In an economy without general value measure (e.g. Money) must be present for a successful transaction between two restaurant economics a double agreement of their exchange desires.

If money serves as general value measure, all prices of an economics in monetary units (GE) are expressed. The efficiency advantage is to be seen in the number of exchange conditions. In an economics with 1 million goods exist about 500 billion relative prices, which indicate the exchange ratios in pairs of the goods among themselves (e.g. 1 h work = 5 bread = 1 trousers). In the case of n goods result (n - n) /2 (relative prices). When using money as general value measure this reduces n-1 of exchange ratios (e.g. 1 h work = 5 GE = 5 bread), which makes the price comparison less laborious.

Literature

• Bernhard Felderer, Stefan Homburg: and new , 7. Edition, 1999, Springer publishing house, ISBN 3-540-66128-x

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