The current prevalence of paper money proves the fact the main aim of the money is to provide a promise to pay. These historical events illustrate the fact that the value of the precious metal is not absolute.įormation of money concepts based on sources other than precious metals began in Mesopotamia, where clay tokens were used instead of coins. However, the abundance of silver became a resource curse. The discovery of a mountain of solid silver-ore has made the Spanish crown “rich beyond the dreams of avarice”. The conquest of the Inca Empire described as an example of a moneyless society appreciating precious metals for their aesthetic qualities let the Europeans find a new source of precious metal. After the region faced the lack of silver, certain attempts, including crusading, were taken to deal with the crisis. The ancient Mediterranean appears to be the place where the monetary system finds its origins. The history of using precious metal as a medium of exchange dates back to Ancient Greece times. The first part of the chapter presents information about the historical backgrounds of money ascent.
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