Question

what do you think Adam Smith have meant by the statement is"Money ia a veil?

Answer 1

The viel of money is the property of money assumed by some economist where by money is treated as other commodities like food,oil,garment etc.

Some economist believe that money acts only as a medium of exchange and does not affect output and employment. Money speeds up the productive process by serving as a go between in transactions. They thought of money simply as a veil which hides real things- goods and services.

Money was considered as a kind of wrapper in which goods came to us- a veil behind which the working of the the real economic forces was concealed.

One of the economist was Adam Smith. He compared money to a road over which all the produce of the country passes to a market but which does not produce itself even in a single blade of anything. For him money serve as a process of exchange but without affecting output in any manner.