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The folly of money markets

I have a basic question that has been bothering me for a long time and that no one seems to have a satisfactory explanation. If a ruler is used to measure length, then it is important to keep the length of the ruler constant and stable. In the same logic, if money is used to measure value, then it should be important to keep it value constant and stable.

With money markets, it is like having a stretchable rubber ruler for measuring length.

Obviously I don't understand this and any enlightenment would be greatly appreciated.

kind regards andrew vecsey

Reply to
andrewvecsey
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The fanancial lives in one country are drasticly affected overnight by money speculators on the otherside of the world. Something is wrong. Is there any one that can shed a light on what it is?

Reply to
andrewvecsey

The measure of length is not dependent on supply and demand.

Reply to
Mike O'Sullivan

Thank you for your reply. Yes, the measure of value of an item is effected by supply and demand, but its cost should not be effected by sudden changes in the value of money used to pay for the items.

Reply to
andrewvecsey

But market forces also determine the value of money.

Reply to
Mike O'Sullivan

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