rekordy: History of money

Evidence: 100 • authority: 72

The history of money is the development over time of systems for the exchange of goods and services. Money is a means of fulfilling these functions indirectly and in general rather than directly, as with barter. Money may take a physical form as in coins and notes, or may exist as a written or electronic account. It may have intrinsic value (commodity money), be legally exchangeable for something with intrinsic value (representative money), or have only nominal value (fiat money).

Evidence: 71 • authority: 72

Fiat money or fiat currency is a type of government-issued currency, generally created by a central bank, authorized by government regulation to be legal tender but not backed by a precious metal, such as gold or silver, nor by any other tangible asset or commodity. Since the end of the Bretton Woods system in 1976 by the Jamaica Accords, all the major government currencies in the world are fiat money. Fiat money generally does not have intrinsic value nor a use value. It has value only because the individuals who use it (as a unit of account or, in the case of currency, a medium of exchange) agree on its value. They trust that it will be accepted by merchants and other people as a means of…

Evidence: 55 • authority: 72

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment. Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value. Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as…

Evidence: 48 • authority: 88

Fiat Money, Intrinsic Properties, and Government Transaction Policy. Why do people coordinate on the use of valueless pieces of paper as generally accepted money? A possible answer is that these objects have intrinsic properties that make them better candidates to be used as media of exchange. Another answer stresses the fact that unconvertible fiat money will not easily appear unless there is a centralized institution that favors its use.The main objective of the paper is to analyze these questions. In order to do this, we take a model of commodity money in which fiat money does not play any significant role and modify it to examine under which circumstances fiat money might come to circul…

Evidence: 48 • authority: 72

In economics, a medium of exchange is any item that is widely accepted in exchange for goods and services. In modern economies, the most commonly used medium of exchange is currency. Most forms of money function as media of exchange, including commodity money, representative money, cryptocurrency, and most commonly fiat money. Representative and fiat money exist in digital form as well as physical tokens, for example coins and notes. Economists, such as William Stanley Jevons, had assumed that exchange media would have arisen in antiquity as awareness grew of the limitations of barter. The form of the medium of exchange follows that of a token, which has been further refined as money. A med…

Evidence: 41 • authority: 80

Money, Commodification and the Corrosion of Value: An Examination of the Sacred and Intrinsic Value

Evidence: — • authority: 72

A monetary system is a system where a government manages money in a country's economy. Modern monetary systems usually consist of a national treasury, a mint, central banks and commercial banks. Choice of monetary system affects inflation rates, trade balances, and exchange rates. Throughout history, countries have used various approaches, including commodity money like gold, representative money backed by precious metals, and modern fiat money backed by government authority.

Evidence: — • authority: 72

Representative money or receipt money is any medium of exchange, physical or digital, that represents something of value, but has little or no value of its own (intrinsic value). More specifically, the term representative money has been used variously to mean: A claim on a commodity, for example gold and silver certificates. In this sense, it may be called "commodity-backed money". Any type of money that has face value greater than its value as material substance. In this sense, most types of fiat money are a type of representative money. Decidedly, commodity money is not a form of representative money, because the former has significant value of its own by being a commodity. Unlike fiat mo…

Evidence: — • authority: 72

In Karl Marx's critique of political economy, the value-form is the social form that wealth takes in a society where commodity exchange is the dominant mode of production. Marx's analysis of the value-form, primarily in the first chapter of Capital, Volume I, argues that the value of commodities is not an intrinsic or natural property but a historically specific social one that must necessarily be expressed in a particular form: first as exchange value and ultimately as money. The theory of the value-form is central to Marx's argument that economic categories like value, money, and capital are not transhistorical tools of analysis but rather expressions of specific, antagonistic social rela…

Evidence: — • authority: 72

Commodity money is money whose value comes from a commodity of which it is made. Commodity money consists of objects having value or use in themselves (intrinsic value) as well as their value in buying goods. This is in contrast to representative money, which has no intrinsic value but represents something of value such as gold or silver, for which it can be exchanged, and fiat money, which derives its value from having been established as money by government regulation. While intimately related, commodity money is not to be confused with commodity-backed money. Examples of commodities that have been used as media of exchange include precious metals and stones, grain, animal parts (such as…

Evidence: — • authority: 88

A Behavioral Economic Analysis of Different Reinforcers: Sound-Clips Versus Points Exchangeable for Money. Human operant studies frequently use points exchangeable for money as reinforcers. Some studies employ more immediately consumable reinforcers to emulate properties of food reinforcers. This study examined demand for points/money and for sound-clips to compare their economic characteristics. Across four participants, demand was often higher and less elastic for points/money than for sounds. During subsequent exposures at each response requirement, demand for sounds often decreased to a greater degree than demand for points/money. Thus, sound-clips seem less durable than points/money ac…

Evidence: — • authority: 80

CHAPTER XXIX. THE VALUE OF MONEY : COMMODITY THEORIES