Business Professor of the Year Kevin Kaiser on Value

This extract video from the INSEAD business school captures a great talk from the Professor of Management Practice Kevin M.J. Kaiser on what is “value”. On top of being entertaining, Pr. Kaiser introduces simply how value (of gold) has nothing to do with gold itself (which we used as money because it was useless as a tool), but with the energy it costs to make the product we want (a hamburger, in the professor speech). As long as everyone trust the fact that gold can be exchanged against things, no one needs to actually own the gold: it can stay safe at the bank. The whole system then relies on trust (and not gold), and trust can be maintained only if the amount of “exchange voucher” delivered by banks for gold grows at the same speed as the amount of  products one can buy with the vouchers.

Very “economy 101″ class, but hearing CEO and managers answers during the talk, I can certify it is not obvious for everyone, even for business people constantly dealing with the notion of value.