5th Contractor in their offer will be required to provide the cost of the unit of account
, on the basis of which will be determined by the price of each product.
But it performs poorly as a unit of account
and a store of value.
The idea of an inflation-proof unit of account
is not itself a novel idea - the grand old man of English economics, Alfred Marshall, suggested it more than a century ago, and in Chile it actually exists.
Economists remind us that money serves three functions: a store of value, a unit of account
and a transaction mechanism.
In this article, my goal is far less ambitious, and that is to lay out a very practical and politically doable, and even simple, way to define a global monetary unit of account
that is closer to a monetary constant than other alternatives now available, such as gold or commodity baskets.
dollar as the unit of account
for international trade in oil, gold, and commodities.
Today, the SDR has only limited use as a reserve asset, and its main function is to serve as the unit of account
of the IMF and some other international organizations.
Research and Experimentation Credit Example and Unit of Account
The exchange value of the unit of account
has no connection to a commodity (as in 'commodity theories') or to a metal ('metallist theories'); the unit of account
is always a creation of the state (the 'state theory' of money).
In the case of England, the pound has been a unit of account
since the Middle Ages.
The contract is for the supply of the unit of account
, together with the operating system.