Source: Ludwig von Mises Institute
by Joshua Mawhorter
“Before a good can be considered money, it must first serve as a medium of exchange and become so through a market process of production, subjective value, and exchange. This necessarily also provides the basis for money to be a meaningful unit of account and a ‘store of value’ (though the term is not fully appropriate). The Mengerian theory of money, refined by Mises and Rothbard, has been extrapolated more fully elsewhere; however, in brief, it posits that money emerges spontaneously from barter as market participants increasingly prefer more marketable goods as media of exchange, eventually producing a generally-accepted medium of exchange. These goods tended to have certain characteristics—scarcity, divisibility, portability, durability, recognizability, fungibility, high value per weight, etc.” (09/25/26)
https://mises.org/mises-wire/mainstream-economics-money-medium-exchange-unit-account-and-store-value