The history of money and its effect on the economy

The dramatic history of living standards in Korea presents one of the most convincing pieces of evidence to show that institutions — particularly the government — matter for economic growth.

The history of money and its effect on the economy

Share Loading the player Moneyin and of itself, is nothing.

Is for Teachers.

It can be a shell, a metal coin, or a piece of paper with a historic image on it, but the value that people place on it has nothing to do with the physical value of the money.

Money derives its value by being a medium of exchange, a unit of measurement and a storehouse for wealth. Money allows people to trade goods and services indirectly, understand the price of goods prices written in dollar and cents correspond with an amount in your wallet and gives us a way to save for larger purchases in the future.

Money is valuable merely because everyone knows everyone else will accept it as a form of payment - so let's take a look at where it has been, how it evolved and how it is used today.

To learn more about money itself, see What Is Money? A World Without Money Money, in some form, has been part of human history for at least the last 3, years. Before that time, it is assumed that a system of bartering was likely used. Bartering is a direct trade of goods and services - I'll give you a stone axe if you help me kill a mammoth - but such arrangements take time.

You have to find someone who thinks an axe is a fair trade for having to face the foot tusks on a beast that doesn't take kindly to being hunted. If that didn't work, you would have to alter the deal until someone agreed to the terms.

One of the great achievements of money was increasing the speed at which business, whether mammoth slaying or monument building, could be done.

The History Of Money: From Barter To Banknotes

Slowly, a type of prehistoric currency involving easily traded goods like animal skins, salt and weapons developed over the centuries. These traded goods served as the medium of exchange even though the unit values were still negotiable.

This system of barter and trade spread across the world, and it still survives today on some parts of the globe. Asian Cutlery Sometime around 1, B.

Nobody wants to reach into their pocket and impale their hand on a sharp arrow so, over time, these tiny daggers, spades and hoes were abandoned for the less prickly shape of a circle, which became some of the first coins.

Although China was the first country to use recognizable coins, the first minted coins were created not too far away in Lydia now western Turkey. Coins and Currency In B. The coins were made from electrum, a mixture of silver and gold that occurs naturally, and stamped with pictures that acted as denominations.

In the streets of Sardis, circa B.

The History Of Money: From Barter To Banknotes

Lydia's currency helped the country increase both its internal and external trade, making it one of the richest empires in Asia Minor. It is interesting that when someone says, "as rich as Croesus", they are referring to the last Lydian king who minted the first gold coin.

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Unfortunately, minting the first coins and developing a strong trading economy couldn't protect Lydia from the swords of the Persian army. By the time Marco Polo visited in 1, A.

The history of money and its effect on the economy

In the place of where the American bills say, "In God We Trust," the Chinese inscription warned, "All counterfeiters will be decapitated. Eventually, the banks started using bank notes for depositors and borrowers to carry around instead of coins.

These notes could be taken to the bank at any time and exchanged for their face values in silver or gold coins. This paper money could be used to buy goods and operated much like currency today, but it was issued by banks and private institutions, not the government, which is now responsible for issuing currency in most countries.The increase in the amount of black money in India over a period of time lead to the perpetual growth of economic dualism which consists of Parallel economy (black money economy) operating side by side with the Official or Reported economy on the country.

New content is added regularly to the website, including online exhibitions, videos, lesson plans, and issues of the online journal History Now, which features essays by leading scholars on major topics in American history. Money, in and of itself, is nothing. It can be a shell, a metal coin, or a piece of paper with a historic image on it, but the value that people place on it has nothing to do with the physical value of the money.

Money derives its value by being a medium of exchange, a unit of measurement and a storehouse for wealth. The objective of the study is to analyze the economic effect of money laundering in Nigeria.

When Did Slavery Start?

Research Questions I. What are the economic implications of money laundering in Nigeria? II. How effective is the Anti-money laundering policy in Nigeria?

Hypotheses. THE HISTORY OF MONEY From Its Origins to Our Time Power, Money, Land and Debt Throughout history, the people who have had most power have almost been rich.

That is one feature of today's international economy that many people think is unfair. Powerful people had always owned most land, but the increasing use of money helped. The History of Money lausannecongress2018.com 2 Money gradually developed out of various different features of early societies, such as ceremonies and feasts, or compensation for killing a man or a bride-price for marrying a woman.

Objects of gold and silver were used in religious activities, as sacrifices and gifts to gods and priests and priestesses.

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