How do societies initially trust using money when it has no inherent value?

Question

How do societies initially trust using money when it has no inherent value?

In: Economics

Answer 1

Money’s value comes from one’s ability to trade without having any goods or services immediately available. It’s essentially an IOU, and everyone agrees to use it because it’s a lot easier than bringing the surplus of your vegetable garden to the supermarket every time you want to buy something.