. why is a stable monetary system essential for the smooth operation of a market system? what would an unstable monetary system be like? why isn't a barter economy just as efficient as an economy with money?

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A stable monetary system is essential for the smooth operation of a market system because it provides a common unit of measure that can be used to price goods and services.

What is market system?
A market system is a form of capitalism in which a nation's businesses and citizens interact to determine economic policy and the cost of goods and services. Although there may be some central planning or government intervention, this phrase typically denotes a more generally market-oriented economy. Adam Smith, David Ricardo, as well as Jean-Baptiste Say were among the classical economists who developed the theoretical framework for market economies. These traditional liberal proponents of the free market held that, in general, the profit motive as well as market incentives led economic decisions in more productive and efficient directions than did government economic planning. They thought that when governments intervened, it frequently resulted in economic inefficiencies which actually left people in worse financial situations.

An unstable monetary system would make it difficult to compare prices and make informed decisions about what to buy and sell. A barter economy is not as efficient as an economy with money because it is difficult to find someone who has what you want and is willing to trade it for what you have.

To learn more about market system
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