I've heard a lot of different economists bullet point a few main ideas as to why money is necessary. However, I'd like to get an ultimate rundown list. What are the major reasons why money is necessary for a culture to thrive?
There are issues with this question as currently written.
I will attempt to offer a partial answer by responding with a different question. If money did not exist, how would governments in modern developed countries impose taxes?
Historically, rulers would impose taxes in kind: forcing peasants to serve in the army, or taking a portion of the harvest. This is not particularly easy to see how a modern government could achieve this in a politically acceptable fashion.
So if you can find a way to allow taxation without money, you have found a way for money to not be necessary in a modern developed country.
- Store of value.
- Medium of exchange.
- Unit of account.
I doubt one can easily think of a benefit offered by money not covered by one of 1-3.
I reccomend reading the experimental work done by Camera on the emergence of money in an experimental economy. Fascinating stuff.
Edit: Whoever added the hyperlink (I think Densep) ... thanks! It inspired me to also link Camera's website. If you look through his CV you will find a few other highly relevant, very interesting, and well executed papers.