Goods and services are produced and exchanged. Money is created by agreement,
issued by governments and used as a more convenient substitute for the actual
goods and services. The amount of money created should have a balanced relationship
with the amount of goods and services produced and exchanged.
Let's
look at a simplified example of a system where goods and/or services are produced
and exchanged between individuals, first by direct trading and then by inventing
and using money.
