ABSTRACT
Money is the medium of exchange. Some of the characteristics that make a commodity good for use as money are high value for its volume and weight, divisibility, durability, uniformity, and stability in value. Gold and silver have generally satisfied these requirements better than other commodities. They have all the characteristics except the important one of stability in value. During the World War period, when most of the countries of the world stopped using gold as money, the lessened demand for gold reduced its value as compared with other commodities. Most of the world suspended gold payments during the depression that began in 1929, and by controlling their paper money had a more stable price level than countries that remained on gold. Price is a ratio of the value of a given amount of some commodity or service to the value of a given amount of the commodity or thing used as money.
