Posted: May 12, 2019 8:55 pm
by Thommo
I think it's 100% accepted in economics that money is a medium of exchange. The archetypal one, in fact.

https://en.wikipedia.org/wiki/Money
The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment.

https://www.investopedia.com/terms/m/me ... change.asp
A medium of exchange is an intermediary instrument or system used to facilitate the sale, purchase or trade of goods between parties. For a system to function as a medium of exchange, it must represent a standard of value. Further, all parties must accept that standard. In modern economies, the medium of exchange is currency.

Money as a Medium of Exchange

Money enables anyone who possesses it to participate as an equal market player. When consumers use money to purchase an item or service, they are effectively making a bid in response to an asking price.

https://en.wikipedia.org/wiki/Medium_of_exchange
Medium of exchange is one of the three fundamental functions of money in mainstream economics.[1][2][3] It is a widely accepted token which can be exchanged for goods and services. Because it can be exchanged for any good or service it acts as an intermediary instrument and avoids the limitations of barter; where what one wants has to be exactly matched with what the other has to offer.[4][5]

Most forms of money can act as mediums of exchange including commodity money, representative money and most commonly fiat money. Representative and fiat money often exist in digital form as well as physical tokens such as coins and notes.


Money is a type of wealth (and that relationship depends on external circumstances, as with any commodity), it is not the same as wealth, and it's not always appropriate to measure wealth with money. The two are in relation with one another, but are certainly not identical.