Money and the Double Coincidence of Wants

Does money always satisfy an otherwise double coincidence of wants? In many instances, yes. Even so, a practical response is needed when results are less than satisfactory - as has been the case with services formation. All too often, both services providers and consumers end up disappointed, when institutions (externally) set the terms of coordination processes. From Nick Rowe's macro framework:

3. But (double) coincidence of wants is rare, so they use money as a medium of exchange (and medium of account).

Resource coordination issues are a primary reason why money replaced barter, centuries earlier. When product formation exists separately from time value, money remains ideal as a medium of exchange. However, when time value is closely tied to product, asymmetric pricing for services coordination becomes difficult for the marginalized and for knowledge dispersal as well. Symmetric compensation for wage structure, would allow time value to play a greater role alongside skills and organizational capacity.

Knowledge use systems could generate a much needed marketplace for time value. This would allow time value to exist in relation to itself - in both personal and group capacities. It is easier for individuals to discover a double coincidence of wants, when they can coordinate in relation to the time and skills potential others also hold for personal exchange. Time arbitrage would provide the base monetary compensation, from which additional elements of the system would be built.

There's another benefit to making time value a part of the coordination equation. Through seeking out double coincidence of wants in services formation, populations would gain the ability to quantify services production. As things now stand, uncertainties involving asymmetric compensation and redistribution, continue to impact both service formation and monetary policy. Further, government responsibility in this regard, has made it difficult to understand how services product even exists in relation to other resource capacity.

Fortunately, skills possibilities are vastly more diverse in today's marketplace, than was once the case for anyone who sought to match skills capacity. Today, the digital realm could help individuals and groups to discover mutual, services based possibilities at local levels.

Also, there are psychological advantages: everyone learns to negotiate for reciprocal tasks and voluntary responsibilities from a young age. This translates into better relationships with family and friends; and over time, a gradual return of societal trust. Granted, it's hard to imagine a world capable of trust in the present. But this is no time to give up, on the hope of a return to stability and prosperity.