What Is Money?

The chapter develops the concept of money. First, the methodology is developed, and then several hypothetical transactions are analysed. The analysis reveals that money is best conceptualised as the ability of a person/party to obtain goods and services from another parson/party. This definition of money increases the scope for economic analysis, as things usually not regarded as money become identifiable as money. The ability or money is an integral part of the context under which it operates. The concept of potential money is also developed, which is identified as an ability that may not participate in a specific transaction in a time and place, but is capable of participating in another transaction, in another time and place.