The evolution of money۔
When man stepped into the world of civilization, he needed a transaction. He first used the exchange of goods for transactions. But he soon realized that such a transaction was not easy. So he started thinking of ways to make the exchange easier. Man has used various commodities for exchange and after centuries of experience he has come to the conclusion that gold is the best for him.
Gold, despite its luster and durability, is in limited quantities in the world. As a result, it gradually acquired the status of a currency and soon its coins came into existence and it acquired the status of a stable currency and it began to be firmly recognized in all kinds of transactions. This not only made transactions easier, but also boosted business.
Since gold was in limited quantities in the world, its value was generally stable. However, sometimes conquests in a nation or country or the discovery of a mine would lead to a limited amount of gold in that limited region. But due to the purchase of luxury goods, large quantities of gold left the region and went to the merchants. But because the common people had a limited amount of gold left. So they could only buy necessities. This led to the collapse of trade and other professions, and so the world has been fundamentally short of money over the centuries.
Paper money was initially issued by various moneylenders. These were, in fact, the gold receipts he had kept as a deposit. According to these receipts, the moneylender was obliged to pay the prescribed amount. These gold receipts soon became very popular because they were easy to use and secure. They facilitated transactions and increased commercial activity. Therefore, considering their popularity, the Bank of England took the responsibility of issuing them. These currency notes were also issued in exchange for gold and the Bank of England was obliged to pay the registered holder the amount of gold (in the form of coins or coins) in exchange for them. This system, although stable but inflexible, is no longer in use in any country.
In 1944, the Bretton Woods Conference decided to separate the currency system from gold. Because in order to increase exports, every country was trying to keep the value of its currency low and thus its goods could be sold cheaply abroad. Depreciation of the currency (which was circulating in exchange for gold) increased the amount of money. In this way, inflation was created in the country and the only way to stop it was to separate from the gold currency. Therefore, the process of separating gold from currency was started in 1968 and by 1971 currency notes were completely separated from currency.
Nowadays most of the money is paper, which is just paper on which it is printed. Moreover, it is generally unchangeable. That is, neither the bank nor the government promises to turn it into gold or anything else. Yet it does its job well and everyone accepts it. He knows why he can use it to buy goods or services or to reduce his debt. Because of this trust, people exchange their valuable goods and services for a few parts and this trust lasts as long as its value remains stable. However, the more it is published, the more mistrust there is and in that case people may refuse to accept it.
It is a fact that since the end of money, gold has not been stable in any of the world's currencies. If we compare the value of world currencies since 1930, the currency of every country has been falling against gold. This falling value of the currency is essential for economic growth and employment. But not so fast that the country becomes unstable. As happened in 1997 in the ASEAN countries. However, the main reason for this is investment in the non-productive sector, ie property, speculation and luxury goods.
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