Jim: >> gold money isn't fiat, though it usually involves some role for the >> state (i.e., certifying that coins are pure gold, etc.) Gold money is >> money because it's naturally scarce ...
Sabri Oncu wrote: > Not at all, Jim! Gold is not scarce. Gold is infinitely divisible. Gold is scarce because it can't be produced at will simply by putting in inputs. Its price is determined not by the cost of its production (unless demand is low) but by limits on its availability. The divisibility of gold has nothing to do with it. If we start using micron-sized gold coins (each worth a lira) then that means the price per ounce is very very high. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
