How Money Acquires Its Value

A commonly-held view is that money has value because the government in power says so. For other commentators, the value of money is established because money is accepted. But why is it accepted? Well, because it is accepted! The demand for a good arises because of its perceived benefit. For instance, people demand food because of the nourishment it offers them. The difference with money is that people demand money not for direct use in consumption but in order to exchange it for other goods and services. According to Murray Rothbard, Money, per se, cannot be consumed and cannot be used