CHAPTER XXII

THE FUNCTIONS OF MONEY AND THE VALUE OF MONEY

Classification 417-418

Measure of values (standard of value) distinguished from medium of exchange; former does not add value to money metal, latter does 418-424

Reserve function 424

Money as "bearer of options"; distinguished from store of value; the _dynamic_ function of money _par excellence_; explanation of low rates on call loans, and short loans, and low yield of high grade bonds, which share "bearer of options" function; "pure rate" of interest _vs._ "money rates": Austria; the New York money market 424-432

Legal tender; the _Staatliche Theorie_ 432-436

Standard of deferred payments; which functions add to value of money metal? 436

Relation of money rates to capital value of money 436-442

Agio when coinage is restricted: India _vs._ Western World 442-450

Equilibrium of gold in arts and gold as money: difficulties of marginal analysis; the money-market phenomena 450-458