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by JumpCrisscross 4692 days ago
Money is, in essence, a messaging system for communicating value. The Minneapolis Fed published a paper in 1996, "Money is Memory". It shows that if one defines money as "an object that does not enter preferences or production and is available in fixed supply" and memory as "knowledge on the part of an agent of the full histories of all agents with whom he has had direct or indirect contact in the past," then "any allocation that is feasible in an environment with money is also feasible in the same environment with money." Hence, "from a technological point of view, money is equivalent to a primitive form of memory" [1].

The reference to "fixed supply" equivocates to "fixed prices" in a growing economy, i.e. one dollar has equivalent purchasing power today or a hundred years from now.

[1] http://www.minneapolisfed.org/research/sr/sr218.pdf "Money is Memory" (1996)