History of money

The history of money begins with the traditional conception of money. She moves it all continents where people money used as an intermediate medium of exchange. In this case, looked at the development of different forms of money, the evolution of the species commonly used is represented in the states under currencies.

Survey

The exchange is a very early form of trade. In its simplest form, two goods are exchanged directly against each other. Certain goods such as grain, cattle, shells, silver or gold proved to be special goods. They were generally estimated to exist in limited but not too small an amount and not perishable. These goods could therefore not once be exchanged for another immediately desired commodity. They could also be accepted as an "intermediate medium of exchange " to exchange them later against the goods actually desired. This goods was thus a first money function as a general medium of exchange. The first goods used as means of exchange goods money. Commodity money was either natural objects ( natural money ), jewelery ( jewelry money) or public use and utility objects and animals.

In the European Middle Age Weight money was used. These were precious metals - especially silver coins and other metals - replaced not by number or face value, but by weight. It divided bullion, jewelery or Foreign coins were used. Buyers and sellers determined the authoritative weight by double weighing ( Görmer 2006, 165).

During continue to use parts of the Middle Ages and early modern times many countries a silver standard as its official currency. In daily payments were both full Kurantmünzen (also: Species coins ) and unterwertige Coinage use. Gold coins usually had no fixed rate against silver but were traded at variable rates. Gold coins were used to pay for more expensive goods and as trade coins for payment of trading partners from abroad.

Phases with stable prices and stable value ratios between Kurant and coins alternated with phases of debasement. For Central Europe in particular must be mentioned in the 17th century, the " Kipper und Wipper time ".

Already in the 10th century, paper money was invented in China. As another form of money intangible money originated in 14th century Italy. This money was deposited with bankers. Claims for payment of a customer to a bank were held and paid on request. This payment claims could be passed from the landfill customers to other holders to which the payment claim was transferred (see owner paper).

Also in the Middle Ages, the first banknotes were issued in Europe. Precursor thereof were "paper ", bills and short term notes. Notes were not initially considered to be cash, but were paid claims against bankers. The notes given therefore, which was to be paid in coins Kurantgeld in exchange for the bill.

On observing how the issue and circulation of Kurantgeld, coins and banknotes as well as the range of goods and the international price of the coinage metals on the economy affect, modern monetary theory approaches have been developed.

Most industrialized countries changed in the 19th century to a gold standard. In the German Reich notes and coins were backed by gold and trade bills and could be exchanged for the corresponding private central banks and the Reichsbank.

Triggered by the state financial needs at the beginning of the First World War, most states were in the early 20th century by the coverage of the money by precious metals from. In place of the covered money entered the fiat money. The monetary policy was now to a special task to a seeker- establish price stability and to avoid inflation.

Natural, goods or Nutzgeld

Natural, goods or Nutzgeld is the generic term for early forms of money. This form of money was once widespread and can be found in all cultures and eras. Valuable, useful or beautiful things that served the daily needs were, as a general equivalent in the form of commodities for commodities of all kinds

Examples of forms of natural, goods or Nutzgeldes are stone money in Micronesia, ring and jewelry money in New Guinea and the South Pacific, worm or shell money in Africa and China, clothing allowance (such as fur) in North America and metallic money in all regions. Skip to include cattle, camels, goats, skins, daggers, spades, jewelry rings, special stones, salt and much more. For commodity money belonged to snails, especially cowries, which were in the middle of the 20th century still widespread in Africa, South Asia and the South Sea Islands in use. In Tibet, the Chinese in 1950 has been widely paid with barley or wheat until the invasion.

With the discovery that some of these things were passed over again, but no longer needed as Nutzgüter, small and much less valuable replicas of these items were used as means of payment. Thus for example, drew knife money, money spades and the like.

The first counterfeit money were made ​​of bone, stone or jade counterfeit shells, as these about 2,000 BC, were the first Chinese cash.

These are forms prämonetären payments. Aspects of countability, storability and ease of transportability played an early role in the choice of material, also with regard to the possibility of storing value. This need corresponded bars or wires made ​​of bronze or silver, which were kept very valuable and easily.

In Italy, small change coins for change were often scarce; they were often replaced by candy in daily life in retail.

Development of Münzgelds

The first coins were struck in the 7th century BC by the Lydians. Coins facilitated trade significantly. They had the advantage of always have the same size, same weight and same appearance and instead can be counted weighed.

In most countries, initially dominated Silver standards. Prices are indicated in the respective defined by amounts of silver currency units. In daily payments were both Kurantmünzen and coins use. During this time, circulating gold coins had a course Silberkurantgeld, which was read on the exchange lists of stock exchanges. Gold coins were inland, the function of " special charge" for the payment of " most significant " goods and served as trade coins for payment of trading partners from abroad.

With the development of coins, phases of stable money developed to stages of debasement in the tipper and Wipperzeit in the 17th century. During a long time Kurantmünze were often coined from silver or gold, you went after a long time stamping of coins over.

After Gresham's law is " good money " replaced in circulation by " bad money " under certain conditions. From two coins recognized as legal tender and the nominal value, equal, an owner will first use that as a means of payment, which has a lower content of precious metal. This is the "bad money ". The more valuable the metal content manufactures coins will retain the owner and melted down to make it characterize a larger number of bad coins. In this manner - or by discharge abroad - good money disappears more and more from the circulation.

Development of banknotes

Paper money originated in 11th century in China as a substitute for coins. It was not originally intended as a supplement to coins, but as a replacement for lack of coins.

In Europe, paper money was not introduced until much later; so the first issue of paper money in 1483 in Spain was held, at that time still than a (temporary ) replacement for missing coins.

The Amsterdam Exchange Bank began in 1609 with the creation of bank notes as currency, but this was still very carefully by the financial institution stayed for decades at any time by adequate reserve currency reserves.

On July 16, 1661 were issued by the Bank of Stockholm, a private central bank, the first official banknotes in Europe. The bank was in trouble but because too many banknotes were printed.

In a large scale paper money was first used in France under John Law Finance Minister in the short period from 1718 to 1720. However, this episode ended in a fiasco.

In Germany, the Saxon and Prussian state paper and treasury notes of the 18th century issued as banknotes.

In the 19th century, the bill became the accepted means of payment currency alongside the coin. Means of payment such as bank notes and coins were covered by reserve currency and could henceforth at any time be exchanged at corresponding private central banks and the Reichsbank in Kurantmünzen.

Through modern monetary theory approaches has since tried to keep faith in that currency systems.

Intangible money

Intangible money ( deposit money, cash) evolved from the check transactions in the 14th century in Italy. Full-fledged coins or precious metals were deposited with bankers. Claims for payment of a customer to a bank were held and paid on request.

The book money was posted to the bank account where the money was paid. It could be deducted and paid back to the later period. Here, the customer got paid an interest in the rule. It was also agreed, when a withdrawal is possible. In view balance immediately a withdrawal could be required.

In the 19th century, a money exchange in non-cash payments has already taken place. During the 20th century, the cashless payments evolved into a standard whereby transfers everyone were possible in principle. It developed while an interbank trading.

However, book money itself is not a legal tender and not subject to any duty of acceptance.

Electronic money

Electronic money is a technical advancement of money. With electronic money is a monetary value represented by a claim on the issuer on a disk stored as a debit card. Here are just a credit, no credit is possible. Electronic money is this an alternative to cash.

Be strictly separated, this money form of debit and credit cards. These are not electronic money, as they have stored up no amount of money and only serve as ID cards to access accounts.