Money

Money
Money was one arguably the most important invention for development to take place. Money has been independently invented at one time or another in each important civilization in the history of the world. There is also remarkable similarity in how the concept of money has evolved in different times in history and in different parts of the world.

Historically, money has usually gone through four stages. In the first stage, money is made of a rare material, and the value of the money is determined by the amount of the material it contains. In the second stage, money is made of another material, such as paper, with no inherent value but can be exchanged into the physical stuff. In the third stage, money cannot be exchanged into anything physical, but its value is determined by law or custom. In the fourth and last stage, inflation increases to the point that money becomes virtually worthless.



Physical Money
Physical money has historically come into existence to facilitat...