Money representing just the market values of commodities is symbolic money. Its function is only to quote the prices of all market goods. The commodity money presents the value for the economy as a whole, and there for its own value as a part of that whole. Such a contradiction transforms the commodity money merely to counting money by which any price is no more than a figure – not a specific commodity equivalent anymore. This makes money symbolic. It is a sign for what is represented, and its quantity can vary independently as the prices are quotable in any amount of money.
Historical Backdrop
• PLATO The Republic: money.
• NICHOLAS BARBON A Discourse Coining the New Money Lighter: money.
• GEORGE BERKELEY The Querist: money as a ticket or chip.
• JAMES STEUART An Inquiry into the Principles of Political Economy: money of account.
• LEON WALRAS Elements of Pure Economics: numeraire.
• VILFREDO PARETO Manual of Political Economy: ideal money.