Course 1: Why Money Exists

Barter: 10 traders need up to 45 pairwise exchange rates to price all goods against each other.
Money: The same 10 traders need only 10 prices \u2014 each good quoted in the common unit.
Result: Transaction costs fall from O(N\u00b2) to O(N), which is why monetized economies can support millions of distinct goods.

COURSE 1 · MONEY

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