Editing Medium of exchange (section)

== Medium of exchange and measure of value ==
Fiat currencies function as money with "no intrinsic value" <ref name=":0" /> but rather exchange values which facilitate a measurable value of exchange. The market measures or sets the real value of various goods and services using the medium of exchange as a [[unit of measure]] i.e., standard or the yard stick of measurement of wealth.<ref name=":1" /> There is no other alternative to the mechanism used by the market to set, determine, or measure the value of various goods and services. Determination of price is an essential condition for justice in exchange, efficient allocation of resources, economic growth, welfare and justice. 
The most important and essential function of a medium of exchange is to be widely acceptable and have relatively stable purchasing power (real value). The following characteristics are essential:

# Value common assets
# Common and accessible
# Constant utility
#Low cost of preservation
#Transportability
#Divisibility
#High market value in relation to volume and weight
#Recognisability
#Resistance to counterfeiting

To serve as a measure of value, a medium of exchange requires constant inherent value of its own or must be firmly linked to a definite basket of goods and services. Furthermore, constant intrinsic value{{Dubious|date=September 2018}} and stable purchasing power are needed. Gold was long popular as a medium of exchange{{Dubious|date=September 2018}} ''and'' [[store of value]] because it was [[Chemically inert|inert]], meaning it was convenient to move due to even small amounts of gold having a considerable and constant value{{Dubious|date=September 2018}}.

Some critics of the prevailing system of [[fiat money]] argue that fiat money is the root cause of the continuum of economic crises, since it leads to the dominance of fraud, corruption, and manipulation, precisely as it does not satisfy the criteria for a medium of exchange cited above. Specifically, prevailing fiat money is free-floating, and depending upon its supply market finds or sets a value to it that continues to change as the supply of money shifts with respect to the economy's demand. Increasing free-floating money supply with respect to needs of the economy reduces the quantity of the basket of the goods and services. It is not a unit or standard measure of wealth and so the manipulation impedes the market mechanism by setting or  determining just prices. This leads to a situation where no value-related economic data is just or reliable.<ref name=":1">Hifzur Rab (2009) 'Freedom, Justice and Peace Possible Only with Correct wealth measurement with a Unit of Wealth as Currency'  HIJSE 26:1, 2010</ref><ref>Hifzur Rab (2006) 'Economic Justice in Islam' AS Noordeen, Kuala Lumpur, Malaysia.</ref> On the other hand, [[Chartalism|Chartalists]] claim that the ability to manipulate the value of fiat money is an advantage, in that fiscal stimulus is more easily available in times of economic crisis.

Because fiat money has "no intrinsic value," when two parties use the same fiat money then the person purchasing the product or service can focus on the [[time price]] and ignore the monetary price.<ref>Gilder, George. Life After Capitalism: The Meaning of Wealth, the Future of the Economy, and the Time Theory of Money. Simon and Schuster, 2023</ref> For example, if a person makes $5.00 an hour and wants to buy a product that costs $20.00 then the time price will be 4 hours and the actual price in fiat money need not be the focus.