How much money?

Question

How much is there in the world do you think that it is a fixed amount or is it increasing,do you think there is a systems somewhere that keeps the amount of money there is in the world and what does money mean to you from a philosophical point of view

Answer 1

This isn't something that someone has an answer to. You can get estimates of the world's monetary base at current prices if you went to each nation's central bank, but it would be an econometrician's nightmare. The problem with the monetary base is that some of it is in mandatory reserves, so for all practical purposes, it does not exist.

To provide an example, China holds about $1,000,000,000,000 in US dollars in bank reserves. The United States only has $46,200,000,000 or about 1/23rd China's reserves. That trillion dollars exists, but at the moment, since no one can use it, it doesn't exist for practical purposes. Is money which is unspendable truly money?

Money tends to increase in price adjusted terms with productivity growth. In other words, if you invent something that allows us to use less of the world's resources to produce the same thing, you have increased productivity. As productivity increases, so money demand increases and they move somewhat together.

As an economist, money is considered to be forgone leisure. It is never considered to be part of someone's wealth as it is just scraps of paper. If it happens to be backed by gold or silver, then it is treated as contingent claims on gold or silver, but the money itself is just paper. It is worth its value as a toilet paper substitute.

That said, money is a claim on other people's production. As long as people accept it in lieu of goods and services it holds some other value. So the value of money is the value of letting someone else work to do something for you.

If you have a dollar and exchange it for an apple, you do not need to go and pick the apple yourself. If you have a lot of money for a vacation, you not only do not have to labor to be able to consume goods and services to meet the demands of your employer's customers, but you do not need to toil and labor to meet your own immediate needs. Some other laborer is going to work in exchange for your money so you do not have to.

Money is forgone leisure. If you accumulate it, then you are accumulating claims on other people's work so you do not have to personally work as hard. As money, not assets like a home or stocks, accumulates you are surrendering leisure until it is spent.

The alternative economic view, as a side note, is to claim that it does not exist by combining the balance sheet of the households with the balance sheet of the government. Since America and most nations are governments of the people, this is quite reasonable. Claims on the government are claims on you personally to the extent taxation will be used to honor those claims. Money is a debt obligation of the government to the households. So, it is like owing money to yourself. That has no meaning, so in practice, that would mean money does not exist. Many economic models simply drop money out entirely as an unnecessary addition to the model.

Answer 2

In the United States, banks create money from interest rates.
The creation of money is dependent upon the government and the consumer to dictate the rates.

Money is a variable that can switch between cash flow and expense and be both at the same time. It is a necessity, it is a gift, it is a curse. However, it makes our society work.

Answer 3

Do you mean how much money as in their value? Then you would have to ask in which currency you're valuing the money. But they'd probably be worth trillions (US) and then some.

There couldn't be a fixed amount. Reserve banks around the world can print as much money (volume) as they please, though that just devalues their currency.

The World Bank may keep tabs on how much money Reserve Banks around the world print and circulate.

Money means options and freedom to me.

Answer 4

counting total money in d world is like counting stars in d sky!!!!!!!!!!
simply countless...
n its amount keeps on increasing, not fixed!!!!!!
i don't think there is a system through out the world which keeps the sum of money( it may b in particular countries thereafter...
i think from philosophical view money is a thing that makes us make our dreams true so in many cases its buys happiness for us!!!!!!!!
like if we hv money we can celebrate our b'day in a 5 star hotel......
but if we don't hv money we don't celebrate it either its just how d circumstances go..........
but i don't say dis also that money is everything coz its very rightly said that "money can't buy everything"

Answer 5

Since you are 15 years old (how did I know that?), if you invest that $1000 into a growth mutual fund (something like the Muhlenkamp Fund, MUHX), it will likely earn 14-15% a year over the long-term, so if you forgo any more "eletronics" (not sure what they are, LOL!) your $1000 could easily grow, all on its own, to be $1,000,000 by the time you are sixty, without you doing ANYTHING. Please print this answer out and save it. Maybe you will come across it when you are 60, broke, hating your job and surrounded by old clothes!

Answer 6

35 trillion dollar