A Taxonomy of Monies from the Consumer's Perspective

Abstract

Because the consumer ultimately decides what is used as an exchange medium, it reasonable that the consumer also serves as arbiter when making distinctions between monies. That is the rationale for this taxonomy of monies based on the theory of consumer choice. The taxonomy clearly and precisely distinguishes between commodity, fiduciary, and fiat monies. In doing so, it provides a framework for facilitating the understanding of real-world monetary events. (E40, E42)