Chapter 29

I would give this chapter a two out of three for difficulty. There was a lot of material introduced in this chapter although nothing was inherently difficult to grasp in particular. I learned about how our monetary system works. Things like how transactions are facilitated and how much money is in the money supply. The reason why we are able to use money as a means of exchange is because people put trust in the future value of the money. Our currency is intrinsically worthless (other than the penny) and so it's important that people have trust in the government and thus the money. Using currency is much more efficient than trying to use items or services to barter. The money supply can also be increased or decreased through the sale and purchase of government bonds. This is one way to control inflation.