What Is The Reason That Money Is Called The Lubricant Of Exchange?

If specialization permits people to concentrate on particular tasks, money then allows people to trade their specialized outputs for the vast array of goods and services produced by others. What is money? Money is the means of payment or exchanges that is, the currency and checks that we use when we buy things. But more than that, money is a lubricant that facilitates exchange. When everyone trusts and accepts money as payment for goods and debts, trade is facilitated. Just imagine how complicated economic life would be if you had to barter goods for goods every time you wanted to buy a Pizza or go to a concert. What services could you offer Sal's Pizza? And what about your education, what could you barter with your college for tuition that it needs? Because everyone accepts money as the medium of exchange, the need to match supplies and demands is enormously simplified.
Governments control the money supply through central banks. But like other lubricants, money can get gummed up. It can grow out of control and cause a hyperinflation, in which prices increases very sharply. When that happens, people concentrate on spending their money quickly, before it loses its value, rather than investing it for the future.

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