Unit of Account and Means of Payment
DOI link for Unit of Account and Means of Payment
Unit of Account and Means of Payment book
Introduction One of the distinctive statements of Marchands, salariat et capitalistes (hereafter MSC) is that, in the analysis of a monetary economy, the unit of account is the starting point, as the catalog of commodities is the starting point of the standard analysis of a market economy (value theory). This statement has three corollaries: a) the unit of account is purely nominal; b) it is arbitrary: it is proclaimed by a public institution outside the market, and this proclamation is the necessary and sufficient condition to have it adopted by monetary subjects (agents); c) the means of payment is a concept that comes logically after the unit of account: its introduction answers the question, not of the unit in which one counts, but of how much is counted.