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In recent posts, George Selgin (here and here) criticizes anthropologist David Graeber for sustaining that anthropological discoveries debunk long standing core economic beliefs. A superficial reading of economics might suggest that this discipline upholds that transactions occur either in the form of barter or with the aid of money. The reason for this dichotomy is not to reject the idea of any other type of exchange (for instance, through gifts), but to emphasize the role of money in a large society. While Selgin is very clear in answering to Graeber’s position, his posts got me thinking about why money is so important in economics and why sound money is so important.

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