WEBVTT

NOTE 11.01. Money and Its Purchasing Power: Introduction

1
00:00:00.000 --> 00:00:06.000
Chapter 11. Money and Its Purchasing Power

2
00:00:06.000 --> 00:00:09.000
1. Introduction

3
00:00:09.000 --> 00:00:14.000
Money has entered into almost all our discussions so far.

4
00:00:14.000 --> 00:00:21.000
In Chapter 3, we saw how the economy evolved from barter to indirect exchange.

5
00:00:21.000 --> 00:00:28.000
We saw the patterns of indirect exchange and the types of allocations of income and expenditure

6
00:00:28.000 --> 00:00:31.100
that are made in a monetary economy.

7
00:00:31.100 --> 00:00:34.260
In chapter four, we discussed money prices

8
00:00:34.260 --> 00:00:38.880
and their formation, analyzed the marginal utility of money,

9
00:00:38.880 --> 00:00:42.940
and demonstrated how monetary theory can be subsumed

10
00:00:42.940 --> 00:00:44.960
under utility theory.

11
00:00:44.960 --> 00:00:49.720
In chapter six, we saw how monetary calculation in markets

12
00:00:49.720 --> 00:00:53.320
is essential to a complex developed economy,

13
00:00:53.320 --> 00:00:56.640
and we analyzed the structure of post-income

14
00:00:56.640 --> 00:01:03.600
and Pre-Income Demands for and Supplies of Money on the Time Market.

15
00:01:03.600 --> 00:01:11.520
And from Chapter 2 on, all our discussion has dealt with a monetary exchange economy.

16
00:01:11.520 --> 00:01:17.720
The time has come to draw the threads of our analysis of the market together by completing

17
00:01:17.720 --> 00:01:25.500
our study of money and of the effects of changes in monetary relations on the economic system.

18
00:01:25.500 --> 00:01:32.500
In this chapter we shall continue to conduct the analysis within the framework of the free market economy.