Sunday, March 10, 2013
Marshalsea Prison: A Short History of Money
Work in progress. Please pardon the dust.
Tributary Systems of Government - Commodity Money
Before money came into widespread use, major civilizations operated on a mainly tributary basis where peripheral parts of an empire were required to pay tribute to a central core.
In these civilizations, the markets were typically highly regulated and played only a small role in commerce. The markets themselves tended to use a commodity system of money. Commodity money unlike modern paper money which can easily lose its value, has an inherent value.
Unfortunately, most forms of commodity money serve as a poor store of value since they can easily degrade. Since differing societies place differing values on certain commodities, they can also serve as a poor form of exchange between differing peoples.
Metal serves as the best commodity for money. Since it does not easily degrade
A Case for the World's Oldest Coin: Lydian Lion
Posted by JohnQuincy at 9:27 AM