What is Money?

For some years conservative economists have voiced opinions that the easy money policies of the Federal Reserve and the increasing deficit spending by the United States will damage the economy.  As the years pass and without clear connection between these policies and their costs or consequences, these calls have begun to sound more like the girl that cried wolf.  However, unless one believes in perpetual motion or alchemy, there must be costs to policies that in essence print money.

Forbes Editor-in-Chief Steve Forbes has said of money:

Money is simply a tool that measures value, like a ruler measures length and a clock measures time.  Just as changing the number of inches in a foot will not increase the building of houses or anything else, lowering the value of money will not create more wealth.  The only way we will ever get a real recovery is through a return to trustworthy, sound money.  And the best way to achieve that is with a gold standard: a dollar linked to gold.  Continue reading

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