Money
a. Hoarding
Money is a commodity and it's used to exchange goods. When it's being used it creates currency. It enables trade. But when money is horded it does not create a currant and resembles a commodity rather than a means to exchange commodities.
b. Means of payment
When a person takes on debt to purchase a good it changes the nature of money. The obvious thing it does is allow the consumer to get a good with out paying all the money for it. This will disrupt the currency of money as the buyer has to hoard money to make the cyclical payments towards his debt. The money is taken out of circulation which will reduce the current of money.
The nature of money in the case makes money the medium of contract rather than the medium to exchange goods.
Friday, December 9, 2011
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