This article was published in TSE science magazine, TSE Mag. It is part of the Autumn 2025 issue, dedicated to finance and money. Discover the full PDF here and email us for a printed copy or your feedback on the mag, there.
You have no coins, credit cards, or digital wallet to pay for a baguette. So, you offer something else in exchange — maybe eggs, or help fixing a roof. That’s barter: a practice as old as humanity. It’s also inconvenient.
What if the baker doesn’t want your eggs or can’t wait for a roof repair?
Money solved that coordination problem. It is not just a tool for trade, but a foundational institution of modern economies. In this context,
without money, large-scale economic planning, saving, or investment would be nearly impossible. Global trade and economic growth would also stall.
As we explore in this magazine, money is more than metal or code. It’s a network of trust. A banknote has no intrinsic value; it works because people believe in the financial system. This allows money to perform three key roles:
- A medium of exchange – we can buy and sell without direct barter.
- A unit of account – we can use the same measure to value a ticket for a football match, a green energy system, or a company.
- A store of value – we can transfer purchasing power over time by saving today and spending tomorrow.
Money has allowed humans to accomplish cooperation on an unprecedented scale: building football stadiums, running hospitals, and launching satellites. It connects billions of people, often without direct contact.
Yet, money is far from perfect. The challenge today is not whether to use money but how to design systems that ensure everyone can fully benefit from its potential. This involves addressing inequalities and fostering more inclusive access to money.
