Legal Tender

10 Pages Posted: 3 Nov 2008  

Dror Goldberg

The Open University of Israel

Date Written: October 13, 2008

Abstract

The legal foundation of the monetary system is the law of legal tender. The "legal tender" concept is used in economics textbooks and journals to describe almost anything except for what it really means in actual laws. Such errors mislead students and prevent an accurate evaluation of the importance of this legal status. This note explains in simple terms what "legal tender" really means and how it could be better explained in textbooks and in the classroom.

JEL Classification: E42, K12

Suggested Citation

Goldberg, Dror, Legal Tender (October 13, 2008). Available at SSRN: https://ssrn.com/abstract=1292893 or http://dx.doi.org/10.2139/ssrn.1292893

Dror Goldberg (Contact Author)

The Open University of Israel ( email )

Raanana
Israel

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