Chapter 9, The Cure for Inflation Summary and Analysis

Federal Reserve Notes are the legal tender of the land. They are readily accepted in exchange for goods and services. But it isn't the pieces of paper that determine the national wealth. It is the work ethic of their population. The supply of money is a variable that the government must seek to control in order to avoid various economic problems in the economy.

Many different items have functioned as money over the course of history. The common factor is that each item had to be accepted in exchange for goods and services. Wampum beads were used in the early days. The state of Virginia used tobacco as a form of money for many years. They even issued certificates of deposits based on tobacco. Cigarettes functioned as a form of money during World...