THE ORIGINS AND NATURE OF MONEY
- Publisher: Editura Univeristatii "Stefan cel Mare" din Suceava
The USV Annals of Economics and Public Administration,
(issn: 2285-3332, eissn: 2344-3847)
HF5001-6182 | money | Business | state intervention | exchange | liquidity | free market
The importance of money and the role they hold in the economy can be seen as the keystone of economic life.
For a better understanding of the essence of the monetary phenomena it is especially important to turn to history and
see how money was born. By turning to their origins, we discover the real fundaments of monetary issues. Only after
such a systematic analysis we will be able to suggest the appropriate solutions for the current monetary issues.
Therefore, in this study I will research the origin of money and their functionality on the market.The aim of this paper is
to analyse the origin of money as a social institution. The appearance and use of money has prehistoric roots. People
have turned to the usage of money out of need to facilitate trade. During thousands of years money has known different
forms going from money as merchandise, to coins and later to paper money and electronic currency. In this study I
have analysed the role of natural money, as well as their production and functionality on the market. The main
questionto be answered is whether the production and functionality of paper money nowadays is the consequence of the
free market, having the Austrian’s School liberal perspective as a starting point. This methodological approach
demonstrates that money is and will remain a social institution and the implication of the authorities in the currency
issuing, even from ancient times, has caused distortions in the economic activity.