Page 1 of 8  1. Lessons from history on the functioning of money History has plenty of examples of money that worked well and money that didn’t. For money to work well, it needs to … be an efficient and broadly accepted means of payment.
… be the unit of account in which prices of goods and services are denominated to anchor our sense of the relative value of different goods and services. … and finally, hold a stable predictable value, or purchasing power, over time. This is essentially what we mean by price stability. Underlying these attributes of money is trust.