Tuesday, February 1, 2011
The Invention of Money
My mother alerted me to this show on "This American Life" devoted to exploring the idea of money. It is a little silly given that it is the "Planet Money" team that is reporting this and that only after a few years on the job did they stop to consider what any principle of macroeconomics student is immediately faced with: how to explain money (or if you take Money and Banking you have to study the definitions of money). You also have to endure the tired and (to my mind at least) incredibly annoying mannered style of Planet Money as well as This American Life, the show upon which it is modeled. Nevertheless, it is an interesting show and I recommend it to those without an economics background and suggest it to those with or for those who haven't really thought about it.
I will stay they start off on the wrong foot in talking about all the 'money' that was lost in the housing bubble recession. It wasn't money as much as 'value.' But in a sense this is the point - people don't get the distinction.