POLI 243 Lecture 12: Lecture 12
12 Sep 2018
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Document Summary
The politics of international monetary relations - international media of exchange. A form of credit, you don"t have to spend it right away. You can spend it in the future. Comparisons when no money is changing hands. Transactions can"t happen without money that both buyers and sellers will both except. Medium of exchange that allows markets to flow quickly. Private banks used to issue their own paper money that some people would accept and use. Government uses their power to force people to pay in their money. They pass a law about creating/endowing existing money with certain powers (legislation about legal tender) Legal tender : this is what the government would accept as payment and no. If you want a license to do business, you must accept this form of payment as other well. You usually can"t use the power of the state to force the money.
