Nothing is as crucial to the functionality of a free market as its money. Money constitutes half of every transaction, representing one side of all value expressed in the exchange of goods and services. But what, exactly, is the price of money?

The commodity with the highest marketability tends to become a society’s preferred medium of exchange — that is, its money. Prices denominated in this common medium enable economic calculation, which in turn allows entrepreneurs to spot opportunities, make profits and push civilization forward.

We’ve seen how supply and demand determine the price of goods, but determining the price of money is a bit trickier. Our predicament is that…

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