What are the factors that determine the value of money?

[Trush Jodie]

One of the things that we often hear is that money has no value any longer. This seems to be true though. But come to think of it, what are the factors that determine the present value of money?

Which factors independently or together influence the value of money?

 

[Augusta]

it is always the buying power of the money. When you have big money but you can get just little for it then the value for your money is less

 

[Min George]

The general determinant of the value of money is strength of the economy. If the economy is weak, inflation would rubbish the value of money.

 

[Fidelia]

The value of money is determined by what it can buy. A dollar might have more power in my country than I'm another country based on what I can do with it.

 

[Augusta]

That's right inflation do come in to rubbish the value of money. This is why we have to invest massively

 

[Suba]

Basically, the value of money is determined by aggregate demand and supply, while demand and supply are influenced by several factors such as capital flows, inflation rates, interest rates and money supply, a country's national income, etc.

 

[magnus2022]

Basically, the value of money is determined by aggregate demand and supply, while demand and supply are influenced by several factors such as capital flows, inflation rates, interest rates and money supply, a country's national income, etc.

I concur with you. You are economist. Many factors defines the value of money. It will be wrong to use one factor to define the value of money. But the most important is the demand and supply is the overall factor that controls value. For example, almost everybody want US dollar, thats make it highly valuable.

 

[Augusta]

Yes the value of money can he determined by its level of acceptance, more acceptance means high value of the money

 

[Springtime]

There are many factors which determine the value of money - Supply and demand, Interest rate, inflation, economic and political stability.