Essay on Money ( History, Development and Theories)

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Money, an amazing yet very terrifying concept invented by humans. The very nature of money is to quantify the value of an asset interpreted in digits. That we humans can understand. This concept is being used for centuries by humans. The base of the construction of towns, societies, cities, and countries. The concept dates back to 5000 years according to some researches. Money is the foundation stone of Banks, which are responsible for the industrial revolution. Banks provide the money in the form of loans to industries. Which are then used by industries to build factories, buy raw materials. Factories produce goods, and services provide jobs for labours and pay their taxes. Taxes help governments to run their operations, enforce the law, and provide welfare to the population. And the list goes on, and on. Money has shaped the fundamental structure of societies around us. Which is truly based on making more profits, and earning by all means necessary. A capitalist approach has lead to more research, and development to make products. Products that are not necessary for our existence. Yet they have become part of humans’ never-ending list of unlimited wants. The amazing structure of today’s economies is based on the amazing computational power of money.

Almost all Microeconomics, & Macroeconomics principles revolve around the circulation of money. If we start with market equilibrium, we can see that the whole principle revolves around determining the price of a commodity according to the will, and ability of consumers. We also find the best quantities from demand, supply equilibrium to maximize the profitability of the supplier. We determine fixed costs and variable costs, predict future profits of the corporations, calculate GDP, GNP, NNP, determine foreign exchange, Interest rates, Inflation, investment, savings, all of these core functions of an economy is based on the circulation and dissemination of money. From determining prices to making Fiscal, and monetary policies. The concept of money is found almost everywhere in economics. 

This amazing, and scientific concept is really a pinnacle of human intelligence. But it has not been this way from the beginning. In ancient times when humans started living in colonies, there was no medium of exchange between people. People used to exchange whatever they had for their desired things through barter. Which was a very problematic, and inaccurate medium of exchange as there was no clear value of commodities, and unfair estimation of the worth of goods, and services. But then humans evolved, and their practices too. The Mesopotamian shekel – the first known form of currency – emerged nearly 5,000 years ago. The earliest known mints date to 650 and 600 B.C. in Asia Minor, where the elites of Lydia and Ionia used stamped silver and gold coins to pay armies. 

Even though money regulates every economic decision and plays a vital role in our lives, economies, and the world. Yet this amazing concept is also flawed. Maybe not, in its application, but in its use. The greed of humans unlocked the gates of the industrial revolution, and research, and development in the modern commercial world. It also opened many illegal, and unlawful ways to earn more money. From corruption to deceit, humans use every mean to earn more and fulfill their greed. The unstoppable urge to earn more than the other has made money a very terrifying invention of human intelligence. 

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