It is useful to make the distinction between real and nominal values as these concepts are intrinsically related to inflation and used in the financial plans that we build at Exponeta Financial. In addition, these concepts are frequently encountered in economic and financial data sets. At a high level, nominal values include inflation, and real Read more about Real vs. Nominal Values[…]
In previous articles we traced the development of money from ancient barter systems to modern day fiat currency. One of the unavoidable realities of money throughout history is that as its supply increases, its value per unit decreases. This is the fundamental principle behind inflation which will be described in this article. Definition Inflation is Read more about Inflation[…]
In this series we have reviewed the development of money from barter systems to commodity money to bank notes and representative money. In this final entry, we will discuss modern day fiat currency. Definition A brief definition is in order before proceeding further: Fiat: a formal authorization or proposition; a decree an arbitrary order Origin: Read more about The History of Money – Part V[…]
So far in this series we have traced the history of money from simple barter systems to commodity money. This article will discuss further advances to the monetary system such as paper money, trade bills, and banknotes. Paper Money The concept of paper money originated in the Song Dynasty in China in the 11th century, Read more about The History of Money – Part IV[…]
Previous articles in this series discussed Barter Systems and Commodity Money. This article will discuss an important development in money, namely the difference in the value of the metal used in commodity money to that of the face value assigned by the Government. Read on for details… The Value of the Metal vs. the Value Read more about The History of Money – Part III[…]
The previous article in this series discussed Barter Systems. This article will discuss the emergence of commodity money, which is generally thought to have evolved out of the necessity to have a specific debt instrument for an “I owe you” (IOU). Origin of the word “money” In the Roman Republic, coins were made on the Read more about The History of Money – Part II[…]
Olas Magnus, 1555 – On Trade Without Using Money – depicting Scandinavian and Russian traders bartering This series of articles intends to discuss the history of money from simple barter systems to modern day fiat currency. This article will discuss barter systems. Barter Systems On the nature of money, Aristotle noted that every object has Read more about The History of Money – Part I[…]