Insubstantiality of Macroeconomic Indicators
Suppose a representative product (in mass ) whose utility (in value ) is exchangeable for the purchasing power of the piece of paper (75% cotton 25% linen, to be precise) with the face of George Washington in the front. As a matter of fact, this is the way we, if in the US, index the representative mass-cum-value , or “rep” hereinafter, to the one-dollar bill. Then, one (1) $5 supra-orange is comparable to five (5) reps ; one $3 meta-apple is equivalent to three (3) reps . In the meantime, incidentally, the otherwise-useless rectangular paper becomes the legal tender to play the function of economy-wide medium of exchange. It is of course the portrait of George Washington (together with two signatures) that transforms one into the other: or the legal tender becomes the medium of exchange. With the above said, by way of accounting for repr...