Economic History Assignment 3

Economic History Assignment 3 - Jennifer Edwards Economic...

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Jennifer Edwards Economic History of Europe Prof. Alpert October 24, 2010 The author Karl Gunnar Persson in chapter 9 of the international monetary regimes in history “state that the supranational authority to enforce the fixed exchange rate of modern ties are made to be broke.” (Persson, 2010) “The international monetary regimes is one of a gradual realization that fixed exchange rate are not necessary for a functional world economy.” However the importance of the domestic policy and independence policy are very difficult to enforce and some how that makes the supranational authority hard to enforce the fixed exchange rate so it can be broken. Going back into the early Chinese and Greek civilization the evolution of money was how the society invent and develop instrument and institution reduce transaction cost with trade. Trade was done without money but with products that would be useful and that would last. For example the trade of wheat for beer means for payment because each consumer had a demand for each product. In this time these were three function of money. The three functions are means of payment, store value and unit of account. So when you think of the trade of beer for wheat the people thought of it as a mean of payment. “Money on the other hand can be seen as a commodity money, which mean money had been made of commodities which have alternative, often ornamental uses an intrinsic value such as gold and silver.” (Persson, 2010) When we talk about coins and
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This note was uploaded on 09/21/2011 for the course ACCT 101 taught by Professor Hollies during the Fall '11 term at University of Bridgeport.

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Economic History Assignment 3 - Jennifer Edwards Economic...

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