What is Money?
It is a medium of exchange in place
And a store of wealth as in a gem, Topz or turquoise
No less an object a strange.
Like any other gadget
Be it in the rich manís pocket;
Or in a bankís basket,
Is up for a sell, do not forget!
Its prices are the interest
And/or the exchange rates paid
The market laid.
Please do not glee!
Money is an Apple on a tree
If the tree produces 120 fruit
Each sold for two Birr notes
The orchardistís income no doubt
would be double the number of the fruit he touted.
Then there comes the query -
How much would be the supply of money?
If you sell 10 apples every 30 days
The number of times the same currency
That visited the apple tree as a pay
Will be 20 Birr Per se:
How you might say?
Well, Money supply * Constant Velocity;
Making party! The Price * scarce Resource Capacity.
Take, the above example as a veracity:-
M * V = P * Y
20 x 12 = 2 x 120
If for some reasons of rapacity
Increase money supply,
In excess duplicity
An adventure to satisfy
Assuming the same tree standing by
Worse still, if there is also a sly
Monkey residing nigh
The price of an apple will soar high.
Inflation hyper flies!!
So, if the authority prints twice more
The price of an apple will double to four.
40 x 12 = 4 x 120
An apple then becomes a rare commodity;
Everyone cherished it no longer
As an esculent but for its beauty;
A quick rich bounty:
In a nation marred with improbity!
It will then be offered as a dowry
For those chosen the bride to marry,
Whilst the labourers toiling in a quarry,
Disheveled and unkempt go hungry!
Alas! That is the Story,
Albeit a gory;
The flip-side of unearned glory!!