Money is essential for modern economies from "summary" of Economics of Money, Banking and Financial Markets, Business School by Frederic S. Mishkin
Money plays a critical role in modern economies, acting as a medium of exchange that facilitates transactions between buyers and sellers. Without money, barter systems would be necessary for trade, requiring a double coincidence of wants between trading partners. This inefficiency can be eliminated through the use of money, which serves as a common unit of account that individuals can use to compare the value of goods and services. In addition to its role as a medium of exchange, money also serves as a store of value, allowing individuals to save and defer consumption to a later date. This function of money is essential for economic growth, as it enables individuals to invest in productive assets and build wealth over time. Without money, individuals would be limited in their ability to accumulate savings and invest in the future. Moreover, money serves as a unit of account that enables indi...
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