Question

How and why did money emerge out of a barter economy? What role does self-interest play in the emergence of money out of a barter economy?

Answer 1

Under the barter system, there was a problem of double coincidence of wants over time humans shifted from barter to monetary system which solved many problems as money ha several features such as a store of value, the medium of exchange and unit of account, etc.

As the introduction of money problem of double coincidence of wants, searching cost, etc, because of the self-interest of individuals in the development of money.

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