History 1807 Lecture 15: History Final Exam
15 Mar 2017
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Document Summary
Money can be traced back to the days of mesopotamia. Systemic conflict in europe so it was difficult to build the economy. Islamic empire that dominated the southern mediterranean and the near east, so that precious metal tended to drain away from backward europe. Solution to outflow of money: exporting labour and goods, exchanging slaves and timber for silver in baghdad or for. African gold in cordoba and cairo: plunder precious metal by making war on the muslim world. Increase in supply will not make a society richer, though it may enrich the government that monopolizes the production of money. Renaissance, trade and barter system, and limited currency allow for modern economy: problems solved by the modern economy. Cashless intra-bank and interbank transaction + fractional reserve banking + central bank monopolies on note issue changed the nature of money- no longer have to be tangible. Joint stock companies such as: united dutch chartered east indian company or voc.
