As early as

As early as 1100 BC in China circulated miniature bronze knives, axes and other tools used to replace real tools that served as a medium of exchange. The coins made with an alloy of gold and silver first appeared in the sixth century BC in the district of Lydia in Asia Minor, who was at that time an important industrial and commercial country. This money was genuinely material money, whose value was determined by their content of precious metals. The currencies proliferated rapidly in all developed countries in the world. Both monarchs and aristocrats, cities and institutions began to print money with his seal to authenticate identity of the metal value of the currency.Some of the earliest coins had a composition very stable, as is the case of the drachma issued in Athens in the sixth century BC, containing around 65-67 grams of pure silver, round or Chinese currency, “qian “Copper, which appeared in the fourth century and which remained as the official currency for two thousand years. However, the coins always limaban or trimmed to remove the precious metal they contained, so that the authorities were tempted to downgrade issued coinage ensuring short-term benefits by reducing the precious metal content. The currencies of low-quality brass or copper were, in fact, fiat money, whose value depended mainly on the number of gold or copper which was interchangeable. The gold and silver coins used to circulate outside the country that issued their intrinsic value as well, the Spanish silver peso, whose material came from the mines of Peru and Mexico, became a currency in common use in China From the sixteenth century.Once created, the coins originated a monetary system whose features have remained essentially constant for millennia, one that has endured changes was the introduction in the XVII century European currencies, the grooves on the edges in order to avoid limasen. Paper money was first introduced in China around the ninth century, as cash exchanged for certificates issued for the government of the Tang Dynasty by private banks. Backed by the powerful Chinese state authority, the money retained its value throughout the empire, thus avoiding the need to transport the heavy silver. Become a state monopoly under the Song Dynasty, paper currency has survived throughout Chinese history, despite the disruption caused by political changes and that the issuance of paper money not backed or silver or other reservations. The problem of depreciation made, thereafter, be maintained as standard silver Chinese exchange for significant transactions.Paper money first appeared in the West in the sixteenth century, when it began to issue promissory notes by the banks to support the monetary deposits of their customers. These means of change proliferated and French colonial authorities of Canada used playing cards signed by the governor promise to pay since 1685, and that sending money from France was slow. Paper money was becoming popular throughout the eighteenth century, but was still money to be issued cr to back the deposits of gold or silver. The trust money when it emerged, it was usually an emergency measure for wartime, as the papyrus (greenback) Americans. Private banks were gradually replaced by central banks as issuers of paper money. In the late nineteenth century the falling value of gold led to the creation of an international gold standard in which all currencies could be exchanged for gold, and the value of money (rather than price) was fixed by the parity of the currency gold.Almost every government suspended the convertibility of their currencies during World War I, lost all interest in re-enter the international gold standard after the Great Depression. Britain abandoned the gold standardin 1931, and the transformation of the world’s currencies to fiat money with values set entirely by market demand led to the abandonment of the dollar link in 1971.

Comments are closed.