Economy and the Role of Money

By Nidal Sakr

cabbie06 Sapone(MAF- 4/14/2009) – The answer to the question of the role of money is not merely a philosophical one. Rather the very answer to this question is the key to understanding the realm of the world’s economic problem today and is indeed the starting point to finding a solution.

As human societies evolved so did both human needs and the goods and services human produces. As needs grew and became more diverse, humans became less self sufficient and more co-dependent on one another. Instead of surviving on few items of food shelter and clothing, humans used a basket of numerous goods and services. Combination that makes such baskets varied from one person to another and items that make up such a combination started to come from different sources producing same or similar items. Exchange that allows producer of a commodity to trade it in for one that is produced by another needed a medium to make such an exchange easy or even possible. It is that need to facilitate exchange of goods and services between various producers and consumers is what gave rise to the need for money. Thus money was invented as a means to facilitate exchange. Read more