HIST 015 Lecture Notes - Lecture 8: Precious Metal, Intramuros, Inca Empire
23 Oct 2016
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Document Summary
Determined by scarcity, demand value, how much of there is it and how much people want it, how much did people put into making it, properties of the item, intrinsic value: certain things are inherently valuable. Silver has global implications, including in china. China needed a new kind of value silver becomes an international currency, and it happens through china. 1570s in china, the chinese govt has a problem. Money that"s valued by fiet because we all agree even though it"s worthless paper, it"s worth a lot more if we agree to trade it for something else. The chinese economy didn"t have a central bank, or anything to control inflation (where the value of the money goes down). Called inflation because the cost goes up as a result. It was getting to be such a problem with so much paper circulating, that the value was dropping dramatically.
