Re: DEfinition of money.

["christian a. gregory" <driver@xxxxxxxxxxxxxxxxxxx>]

hi paul,

i think i follow this definition except for the last sentence. what does
elasticity of production/ substitution mean?

thanks

christian

IN my Post Keynesian Macroeconomic Theory book , chapter 6 and 7 discusses
the various definitions of money -- including exemplifications that
Monetarists confuse as definitions.  I define money by its two functions
and two propoerties. Its functions are:as that thing which discharges legal
contractual obligations (Keynes's chartalist definition ) and as a store of
value. (Anything that pssesses BOTH functions is MONEY.  The two properties
are essential for liquidity: its elasticity of production is zero and its
leasticity of substitution for producible goods is zero.