Numeraire

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Numéraire - the good that determines the price of other goods. In practice, the price of one property is assigned a value of 1, then the numeraire price is the relative price that measures the value of the first good.

Example: Zosia bought bread for $ 2.40. In this case gold is a good numeraire. One could say that Zosia sold 24/10 zloty for 1 bread. In this case the bread is numeraire.

It is worth noting that whether we sell or buy depends on what is good numeraire. If we buy numeraire we sell other good if we get rid of numeraire we buy other good. Our habit to give everything at a monetary price has taught us the practice of giving money as numeraire. Bibliography

wiki

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