Changes

At bottom money is, then, a social [[convention]], but a convention of uncommon strength that people will abide by even under extreme provocation. The strength of the convention is, of course, what enables governments to [[profit]] by inflating (increasing the [[quantity]] of) the currency. But it is not indestructible. When great increases occur in the quantity of these pieces of paper—as they have during and after [[war]]s—money may be seen to be, after all, no more than pieces of paper. If the social arrangement that sustains money as a medium of exchange breaks down, people will then seek substitutes—like the cigarettes and cognac that for a time served as the medium of exchange in Germany after [[World War II]]. New money may substitute for old under less extreme conditions.  

At bottom money is, then, a social [[convention]], but a convention of uncommon strength that people will abide by even under extreme provocation. The strength of the convention is, of course, what enables governments to [[profit]] by inflating (increasing the [[quantity]] of) the currency. But it is not indestructible. When great increases occur in the quantity of these pieces of paper—as they have during and after [[war]]s—money may be seen to be, after all, no more than pieces of paper. If the social arrangement that sustains money as a medium of exchange breaks down, people will then seek substitutes—like the cigarettes and cognac that for a time served as the medium of exchange in Germany after [[World War II]]. New money may substitute for old under less extreme conditions.  

 

In many countries with a [[history]] of high [[inflation]], such as Argentina, Israel, or Russia, prices may be quoted in a different currency, such as the U.S. dollar, because the dollar has more stable [[value]] than the local currency. Furthermore, the country's residents accept the dollar as a medium of exchange because it is well-known and offers more stable purchasing power than local money[1].

In many countries with a [[history]] of high [[inflation]], such as Argentina, Israel, or Russia, prices may be quoted in a different currency, such as the U.S. dollar, because the dollar has more stable [[value]] than the local currency. Furthermore, the country's residents accept the dollar as a medium of exchange because it is well-known and offers more stable purchasing power than local money[1].

==Note==

==Quote==

1. Stability of the U.S. dollar - outdated

<center>[[Love]] is the currency of [[Master Universe|the universe]].</center>

[[Category: General Reference]]

[[Category: General Reference]]

[[Category: Economics]]

[[Category: Economics]]