Timeline for What is the difference between money and currency?
Current License: CC BY-SA 4.0
15 events
| when toggle format | what | by | license | comment | |
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| Nov 6, 2019 at 17:17 | comment | added | jamesqf | @user253751: See above, or consult a dictionary. When the "IOU" becomes formalized, it is no longer an IOU, but a contract. | |
| Nov 5, 2019 at 12:44 | comment | added | Criticizing Israel not allowed | @jamesqf A bank deposit is a formalized IOU with certain legal requirements. | |
| Nov 4, 2019 at 4:29 | comment | added | Jeremy Holovacs | @jamesqf When we were on the gold standard, paper money was literally an IOU... that was the origin of all paper money. Though we now declare value by fiat, it doesn't change the fact that the basis of paper money was a promissory note issued by the government to exchange for gold at some later point... that's what I'd call an IOU. | |
| Nov 3, 2019 at 16:56 | comment | added | jamesqf | @user253751: No, a bank deposit is not an IOU. An IOU is an informal promise, nothing more. | |
| Nov 2, 2019 at 13:39 | comment | added | Criticizing Israel not allowed | Bank deposits, however, are IOUs from the bank to yourself. The bank promises to give you a certain amount of paper money on request. Trading the IOUs is easier than trading the paper money. (by the way, you have to wonder when the "paper money standard" for bank deposits will end. Paper money is to bank deposits what gold was to paper money) | |
| Nov 2, 2019 at 2:16 | comment | added | jamesqf | @Jeremy Holovacs: No, they're not IOUs, and haven't been since the US stopped printing silver certificates, because the government will not give you anything else for them - except in the same sense that a business would provide goods & services in exchange for currency. So if I want say a firewood cutting permit for the USFS, the government person will take my currency in the form of a $20 bill, or will (I think) accept a check or credit card for that amount of money, just as e.g. the gas station will accept cash or credit card. | |
| Nov 1, 2019 at 19:43 | comment | added | Jeremy Holovacs | @jamesqf Aren't those "nicely-engraved pieces of paper in your wallet" simply IOU's issued by the government? While we don't have the gold standard any more, that was their original purpose. | |
| Nov 1, 2019 at 16:20 | comment | added | Joe | Currency is not (solely) physical paper/metal. | |
| Nov 1, 2019 at 16:16 | comment | added | jamesqf | @user253751: I wouldn't think an IOU is either money or currency. It's just a promise, which may or may not be kept. Giving paper money to someone would be USING both currency and money - currency is always money (barring unfortunate political events), but most money is not currency. So I can give someone money by electronic transfer from my bank account without using currency. | |
| Nov 1, 2019 at 9:22 | comment | added | Criticizing Israel not allowed | If I write an IOU about paper money, is that currency? How about the act of giving paper money to someone else, is that currency? | |
| Nov 1, 2019 at 1:32 | comment | added | jamesqf | @user253751: I don't know about that. If I write a paper check on my account, is that currency? How about electronic transfers when I pay bills? I wouldn't think so, but that's just my opinion. I'll defer to anyone who has a better explanation. | |
| S Oct 31, 2019 at 21:57 | history | suggested | Nosjack | CC BY-SA 4.0 |
expanded acronym
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| Oct 31, 2019 at 17:37 | comment | added | Criticizing Israel not allowed | I think you could also say that bank account deposits form a currency (which is different from the actual paper one!) | |
| Oct 31, 2019 at 16:35 | review | Suggested edits | |||
| S Oct 31, 2019 at 21:57 | |||||
| Oct 31, 2019 at 16:29 | history | answered | jamesqf | CC BY-SA 4.0 |