Editing Medium of exchange (section)

== Mutual impedance with store-of-value function ==
An ideal medium of exchange is spread throughout the marketplace to allow individuals with exchange potential to buy and sell. When money serves the function of a [[store of value]], as [[fiat money]] does, there are conflicting drivers of monetary policy. This is because a store of value can become more valuable if it is scarce in the marketplace.<ref>[[Thomas H. Greco, Jr.|T.H. Greco]]. ''Money: Understanding and Creating Alternatives to Legal Tender'', White River Junction, Vt: Chelsea Green Publishing (2001). {{ISBN|1-890132-37-3}}</ref> When the medium of exchange is scarce, traders will pay to rent it ([[interest]]), which acts as an impedance to trade.  In stable or deflationary environments, interest is a net transfer of wealth from debtor to creditor with the opposite transfer under inflationary environments.