The Economist: The origin of money and saving the single currency | European News
Money is the cornerstone of the economy. Help Member to raise taxes to finance public goods and allows producers to improve their merchandise best potato peeler reinvesting the proceeds of trade; and yet their origin remains a mystery.
Some say that money can not exist outside the current system state. Others think that they have nothing to do with each other, that money would have occurred regardless of the organization best potato peeler of society. It is a debate as the world who can help us better understand monetary issues facing best potato peeler today's economy.
Money fulfill best potato peeler three basic functions. First, it should be a medium of exchange, easy to use for the acquisition of goods and services. Then you need to store up to a certain value so as to be set apart in order to be easily used at all times. Finally, it should be a unit. Many other things can perform three functions. Tea, salt and cattle have met, over time, the current role of money. In British prisons, prisoners used for this purpose shower gel packets or strings of beads.
Money is mentioned several millennia ago. Around 650 BC in Lydia (now a region best potato peeler of western Turkey), electrum best potato peeler coins were manufactured, an alloy of gold and silver. The first banknotes appeared in China around the year 1000, while the Aztecs used the beans as currency unit until the twelfth century. What we fail to understand is how it came to this Convention.
In 1892, the economist Karl Menger founded a school of thought best potato peeler out. According to its precepts, monetization of the economy emerged when communities have moved beyond subsistence farming and began to specialize. A great leap forward, best potato peeler but the appearance imposing trade. The problem is that markets operate on the basis of barter advancing very hard: you have to look to the left and right exactly the person who has what you want and want what you have. So, the money would have come from the desire to reduce best potato peeler the costs of sharing in nature best potato peeler and have been developed in attempt to try. First, it was necessary for the product used as currency to devalue when not bought or sold. Therefore, the clothes, for example, could not be used for this purpose - no one appreciate best potato peeler a second-hand blouse the same as the new one. Instead, mobile products, long lasting (which eliminates the calculation fruit and vegetables, for example) and divisible into smaller units were suited well the monetary function. Menger called this complex of features necessary "merchantability". So it came to the use of spices and clam shells as a money. Attention, reached here without government intervention. Therefore, the origin of money would be found in attempts to reduce the costs of barter is the currency chosen to minimize best potato peeler these costs. Menger's theory is primarily useful for understanding the emergence of informal coins, such as those used today detainees. It has some flaws but major, highlighted by Charles Goodhart of the London School of Economics, best potato peeler in a study published in 1998. In this respect, the researcher gives the example of the widespread use of precious metals as a currency. best potato peeler A follower of Menger's theory would explain this preference by the fact that metals are durable, mobile and division, making them ideal replacement units. Just as Mr. Goodhart stress, to evaluate pieces of raw metals is extremely difficult, which increases the costs of their use in commerce - Finally, best potato peeler it is much easier to appreciate the value of a bag of salt or a cow. Therefore, the popularity of crude metals contradicts test "merchantability" Menger.
This dilemma explains why metal money circulated in the form of coins, not raw pieces, each coin containing a certain amount of metal. It is known, however, that history, the mint was not a private sector initiative that sought to reduce their cost of barter, best potato peeler but a government operation. State intervention, not merchants, imposed functioning metal coins.
Thus arose a new theory meant to justify best potato peeler massive role in the development of state money - "cartalistă theory," as he calls Mr. Goodhart. best potato peeler The taxation of governments was highly motivated to quit based on barter best potato peeler economies. Money had the advantage of allowing the measurement of income and expenses, which could then be taxed. In addition, the state pocket thicken and because seigniorage - the difference between the cost of currency issue and its nominal value. It Was
Money is the cornerstone of the economy. Help Member to raise taxes to finance public goods and allows producers to improve their merchandise best potato peeler reinvesting the proceeds of trade; and yet their origin remains a mystery.
Some say that money can not exist outside the current system state. Others think that they have nothing to do with each other, that money would have occurred regardless of the organization best potato peeler of society. It is a debate as the world who can help us better understand monetary issues facing best potato peeler today's economy.
Money fulfill best potato peeler three basic functions. First, it should be a medium of exchange, easy to use for the acquisition of goods and services. Then you need to store up to a certain value so as to be set apart in order to be easily used at all times. Finally, it should be a unit. Many other things can perform three functions. Tea, salt and cattle have met, over time, the current role of money. In British prisons, prisoners used for this purpose shower gel packets or strings of beads.
Money is mentioned several millennia ago. Around 650 BC in Lydia (now a region best potato peeler of western Turkey), electrum best potato peeler coins were manufactured, an alloy of gold and silver. The first banknotes appeared in China around the year 1000, while the Aztecs used the beans as currency unit until the twelfth century. What we fail to understand is how it came to this Convention.
In 1892, the economist Karl Menger founded a school of thought best potato peeler out. According to its precepts, monetization of the economy emerged when communities have moved beyond subsistence farming and began to specialize. A great leap forward, best potato peeler but the appearance imposing trade. The problem is that markets operate on the basis of barter advancing very hard: you have to look to the left and right exactly the person who has what you want and want what you have. So, the money would have come from the desire to reduce best potato peeler the costs of sharing in nature best potato peeler and have been developed in attempt to try. First, it was necessary for the product used as currency to devalue when not bought or sold. Therefore, the clothes, for example, could not be used for this purpose - no one appreciate best potato peeler a second-hand blouse the same as the new one. Instead, mobile products, long lasting (which eliminates the calculation fruit and vegetables, for example) and divisible into smaller units were suited well the monetary function. Menger called this complex of features necessary "merchantability". So it came to the use of spices and clam shells as a money. Attention, reached here without government intervention. Therefore, the origin of money would be found in attempts to reduce the costs of barter is the currency chosen to minimize best potato peeler these costs. Menger's theory is primarily useful for understanding the emergence of informal coins, such as those used today detainees. It has some flaws but major, highlighted by Charles Goodhart of the London School of Economics, best potato peeler in a study published in 1998. In this respect, the researcher gives the example of the widespread use of precious metals as a currency. best potato peeler A follower of Menger's theory would explain this preference by the fact that metals are durable, mobile and division, making them ideal replacement units. Just as Mr. Goodhart stress, to evaluate pieces of raw metals is extremely difficult, which increases the costs of their use in commerce - Finally, best potato peeler it is much easier to appreciate the value of a bag of salt or a cow. Therefore, the popularity of crude metals contradicts test "merchantability" Menger.
This dilemma explains why metal money circulated in the form of coins, not raw pieces, each coin containing a certain amount of metal. It is known, however, that history, the mint was not a private sector initiative that sought to reduce their cost of barter, best potato peeler but a government operation. State intervention, not merchants, imposed functioning metal coins.
Thus arose a new theory meant to justify best potato peeler massive role in the development of state money - "cartalistă theory," as he calls Mr. Goodhart. best potato peeler The taxation of governments was highly motivated to quit based on barter best potato peeler economies. Money had the advantage of allowing the measurement of income and expenses, which could then be taxed. In addition, the state pocket thicken and because seigniorage - the difference between the cost of currency issue and its nominal value. It Was
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