Why We Use Money: The Fisherman Who Needed A Knife (1970)

This story tells the tale of a fisherman who needs a new knife to cut himself free, but has no money. He attempts to trade his freshly caught fish for a knife from the knife maker, who instead wants a hat. This leads the fisherman on a circular journey of trades: a fish for a hat from the hat maker, who wants bread; bread from the baker, who wants a pot; and finally a pot from the potter. After a series of exchanges, the fisherman obtains the pot, trades it for bread, the bread for a hat, and the hat for the knife. This experience sparks a conversation with the knife maker, leading them to propose the idea of a universal medium of exchange – coins – to simplify trade for everyone in the village, which eventually evolves into the modern monetary system.

Keywords: fisherman, trade, fish, knife, hat, bread, pot, coins, money, barter, village, exchange, value