ISE2014_Class2

ISE2014_Class2 - Class 2 - Money ISE 2014 Click to edit...

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Click to edit Master subtitle style Class 2 - Money ISE 2014 Wednesday August 25th
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Where did money come We learned last class that our earliest archeological records of money date back to 600 BC in Ephesus (Modern Turkey)1
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What makes money Portable (usually) Allows trade to take place over greater distance Durable It doesn’t physically degrade Fungible
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Some choices of money2
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Types of Money You may notice that not all money is created equal. A giant stone serves little practical purpose, while a silver coin can always be used for its silver. If money is based on a commodity such as silver we call it commodity money If money has no intrinsic value, such as stones or paper dollars, we call it
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Commodity vs. Fiat The most popular choice for much of history was coinage based on precious metal For much of pre-Renaissance history commodity money was practical for international trade Without a precise way to value foreign currency, the value of the commodity could
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Commodity vs. Fiat In modern times, almost all nations
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ISE2014_Class2 - Class 2 - Money ISE 2014 Click to edit...

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