The man on the street would probably cite coins and bills as a definition of money. But the balance on his checkbook is probably also viewed as many, even though the bank does not have cash to match. A traveler check would also has as many. What about bank checks? And IOUs? Gold? The family silver? A mortgage?

Most people believe that there is a underlying value to coins and bills. But at the same time they are familiar with inflation, as well as the inability to exchange their cash for gold at the central bank.

Money is confidence - a belief that you can reuse the tool for future purchases.