<p>There are issues with this question as currently written. </p>

<p>I will attempt to offer a partial answer by responding with a different question. If money did not exist, how would governments in modern developed countries impose taxes?</p>

<p>Historically, rulers would impose taxes in kind: forcing peasants to serve in the army, or taking a portion of the harvest. This is not particularly easy to see how a modern government could achieve this in a politically acceptable fashion.</p>

<p>So if you can find a way to allow taxation without money, you have found a way for money to not be necessary in a modern developed country.</p>

CC BY-SA 4.0
2018-12-26T16:45:14.643Z
2018-12-26T16:45:14.643Z
Brian Romanchuk
<ol>
<li>Store of value. </li>
<li>Medium of exchange. </li>
<li>Unit of account. </li>
</ol>

<p>I doubt one can easily think of a benefit offered by money not covered by one of 1-3. </p>

<p>I reccomend reading the <a href="https://ideas.repec.org/a/aea/aejmic/v6y2014i1p290-314.html" rel="nofollow noreferrer">experimental work done by Camera</a> on the emergence of money in an experimental economy. Fascinating stuff. </p>

<p>Edit: Whoever added the hyperlink (I think Densep) ... thanks! It inspired me to also link <a href="https://www.chapman.edu/research/institutes-and-centers/economic-science-institute/about-us/gabriele-camera.aspx" rel="nofollow noreferrer">Camera's website</a>. If you look through his CV you will find a few other highly relevant, very interesting, and well executed papers. </p>

CC BY-SA 4.0
2018-12-26T23:07:37.823Z
2018-12-27T10:35:55.610Z
2018-12-27T10:35:55.610Z
123
<p>I've heard a lot of different economists bullet point a few main ideas as to why money is necessary. However, I'd like to get an ultimate rundown list. What are the major reasons why money is necessary for a culture to thrive?</p>

CC BY-SA 4.0
2018-12-26T02:21:32.287Z
"Money" just means "a commonly accepted medium of exchange with a commonly agreed value", or something of that ilk.  It could be walrus tusks, if the supply of tusks was stable and they were easily traded.  Without a common medium of exchange how do you maintain "trade", and without trade how does your culture "thrive"?
Hot Licks
CC BY-SA 4.0
2018-12-26T07:25:23.137Z
Historians are extremely dubious of the concept of cultures “thriving.”
Samuel Russell
<money>
Why is Money Necessary?
CreationTribe
# Why is Money Necessary?

(Asked by: username_0 on 2018-12-24)

I've heard a lot of different economists bullet point a few main ideas as to why money is necessary. However, I'd like to get an ultimate rundown list. What are the major reasons why money is necessary for a culture to thrive?

**Tags:** money

> **Comments:**
> **username_1**: "Money" just means "a commonly accepted medium of exchange with a commonly agreed value", or something of that ilk.  It could be walrus tusks, if the supply of tusks was stable and they were easily traded.  Without a common medium of exchange how do you maintain "trade", and without trade how does your culture "thrive"?  
> **username_2**: Historians are extremely dubious of the concept of cultures “thriving.”  

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## 2 answers

### Answer by username_3 on 2018-12-26. Score: 2

There are issues with this question as currently written.

I will attempt to offer a partial answer by responding with a different question. If money did not exist, how would governments in modern developed countries impose taxes?

Historically, rulers would impose taxes in kind: forcing peasants to serve in the army, or taking a portion of the harvest. This is not particularly easy to see how a modern government could achieve this in a politically acceptable fashion.

So if you can find a way to allow taxation without money, you have found a way for money to not be necessary in a modern developed country.


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### Answer by username_4 on 2018-12-26. Score: 2

1. Store of value.
2. Medium of exchange.
3. Unit of account.

I doubt one can easily think of a benefit offered by money not covered by one of 1-3.

I reccomend reading the [experimental work done by Camera](https://ideas.repec.org/a/aea/aejmic/v6y2014i1p290-314.html) on the emergence of money in an experimental economy. Fascinating stuff.

Edit: Whoever added the hyperlink (I think Densep) ... thanks! It inspired me to also link [Camera's website](https://www.chapman.edu/research/institutes-and-centers/economic-science-institute/about-us/gabriele-camera.aspx). If you look through his CV you will find a few other highly relevant, very interesting, and well executed papers.


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