Accounts Quote by Nouriel Roubini
“A currency serves three functions: providing a means of payment, a unit of account and a store of value. Gold may be a store of value for wealth, but it is not a means of payment. You cannot pay for your groceries with it. Nor is it a unit of account. Prices of goods and services, and of financial assets, are not denominated in gold terms.”
About This Quote
Source Book: Economics and the Future, Nouriel Roubini, 2020
Money must be usable for transactions, measurable, and retain value; gold fails as a transaction medium and accounting unit.
In simple terms: Money needs three roles; gold lacks two.
Key Takeaway
Recognize gold’s limits as currency.
Themes
economics
money
valuation
Mood
analytical
critical
Type
theoretical
policy
When to use this quote
- investment decisions
- policy analysis
- personal finance
- risk assessment
Key Concepts
monetary theory
store of value
medium of exchange
Questions to Reflect On
- How do digital currencies address these three functions?
- Can a single asset ever fully satisfy all monetary roles?
A Different Perspective
Gold’s scarcity and volatility challenge its stability as a store of value.
