ABSTRACT
Can an advanced economy exist without money? Economic theory often seems to assume that paradoxical position. General equilibrium models postulate that individuals trade commodities with each other, without mentioning any monetary medium of exchange. In reality, of course, money and commodities coexist, and clearly depend on each other. Yet the incorporation of money into abstract economic theory has posed serious difficulties. Economists discussed these difficulties for a while in the mid-twentieth century and later, and then seemingly agreed to move on, without having provided a satisfactory solution.
