Friday, 19 February 2016 21:27

What is money and why is it problematic?

The history of Money

Usually, we tend to think that money arose with coinage during the late Iron Age. Before that, human beings generally bartered goods directly, we are taught. The facts are far more nuanced and poised towards a gradual evolutionary development of currencies that have followed similar patterns throughout the world.

It is true that when trade was infrequent, goods were primarily exchanged as barter or gifts. When agriculture was developed, the population grew and villages turned into towns, trade became more and more habitual. Thus, with soon to be dozens of different goods exchanging owners in buzzing markets, trade became more and more complicated. Soon, certain goods evolved beyond their usage utility to serve as “key goods” to obtain other goods.

Published in Economics