Explain why there is a blurry line dividing objects that are "money" from those that are not.

(b) Give examples of some clear-cut cases, and some borderline ones.

(c) Could the position of this blurry line change overtime?

(d) Why does the answer to (c) matter?

1. As we have discussed in class, though most countries have their own currency, country is not the same as currency area. For example, many different countries use the Eurod. On the other hand Hong Kong is part of China, but has its own currency e' (the HK dollar is even pegged to the US dollar, not the Renminbi). Based on this background: (a) Should Greater Vancouver have its own currency? (b) If yes, should that currency be pegged to the CAD, pegged to the USD, or float?