Alternatives of Monetary System Case Study Example | Topics and Well Written Essays - 250 words

Alternatives of Monetary System - Case say ExampleSuch systems are vulnerable to inflation since there are no clear regulations on supply of exchange commodities (McEachern, 2012). Furthermore, the system would be subject to double coincident of wants whereby buyers not only count for commodities that they want but too people who are ready to accept their commodity. Valuable commodities such as precious metals would also be used as a medium of exchange in countries with busted pecuniary systems. Communities in the affected countries can also designate certain products to re dapple money. Such products would be selected according to their portability and availability. Preferred commodities should be portable, scarce, and relatively durable. In the case of a prison environment, cigarettes were the preferred bullion due to their scarcity and portability. Virtual money can also be used in place of local currency. In a world supported by technology, virtual money can pull up stakes a suitable medium of exchange if the system is administered by independent bodies (Bade, & Michael, 2002). Postage stamps can also be used as a currency since they have currency value printed on them. Thus, the pickaxe for a medium of exchange would depend on the concerned society and the immediate economic/monetaryneeds.