Where Mackerel Is Money

In 2016 The Atlantic told us that ramen noodles replaced cigarettes as prison currency.

Now it’s mackerel.

Prison Currency

Cigarettes

During World War II, prisoners, with no paper money, used cigarettes. Seven cigarettes could get them a ration of margarine or one and a half chocolate bars. Frobably for more, you could have your shoes shined or your cell cleaned.

Ramen

More recently, studying a state prison during 2015 and 2016, a researcher at the University of Arizona observed inmates buying thermal clothing with six-packs of Ramen. He concluded that because of declining services, inmates selected an affordable, easily accessible, and edible way to obtain necessities and food.

Mackerel

Now, as an inmate, the founder of a fraudulent cryptocurrency exchange is spending another form of money. Knowing that cigarettes and cash are banned in prison, Sam Bankman-Fried instead is using mackerel pouches. While the Wall Street Journal reported that he has purchased a haircut with “pouches of macks,” he also could be using them for other goods and services. Actually, there are two kinds of pouches. Those that were past their expiration date have less value.

Below, an inmate explains that each of the 500 inmates gets 14 packets a week. (Do note that he misuses the word inflation.)

Our Bottom Line: Characteristics of Money

In a news article we are told the pouches of mack are not real money. But indeed they could be.

In prison, accepted for transactions, they are a medium of exchange. In addition, as a unit of value, people know what they are worth. And finally, as dried fish, they can be a store of value–if inflation does not strike.

So, equipped with these three characteristics, mack pouches are money.

My sources and more: For starters, The Atlantic and this University of Arizona article told about prison currency. From there, WSJ had the update for pouches of mack and FEE had some background.