Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 27

Suppose you live in a country perfect for growing tulips and governed by King Balthazar, who proposes that you use the tulips for your currency. After all, says Balthazar, they are widely accepted in the community, they've been valuable for years, and are highly portable. If you were Balthazar's economic advisor, would you recommend using the tulips? If yes, list the traits of good money they satisfy. If no, list the trait(s) of good money they do not satisfy.