By virtue of its general acceptability the medium of exchange provides a service to the user, namely it minimises the time and effort needed to trade on a market. This exchange service implicit in the use of money can be valued independently of the value that gold and silver receive in their non-monetary uses.
Mr. Greenspan presents the views of the Federal Reserve in its semi-annual report on monetary policy Testimony of the Chairman of the Board of Governors of the Federal Reserve System, Mr. Alan Greenspan, before the Senate Banking Committee on 26/2/97. I appreciate the opportunity to appear before this Committee to present the Federal Reserve’s semiannual report on monetary policy.