At First, Notes Could Be Issued By All Commercial Banks But With The Passage Of Time When Paper Money Became Inconvertible Into Metallic Money Issuing Of Notes Became.
After introducing the properties of money the development of payment systems is outlined. Paper notes were issued to act as an iou for the metals that were originally too cumbersome to carry. The first transition to paper money occurred in 700 bc in china.
While Paper Money Was Certainly Easier To Carry In Large Amounts, Using Paper Money Had Its Risks:
Supply of old world coins was becoming hard to get and a local governor eventually signed off on making these playing card legal currency in new france. The evolution of money continued with the introduction of paper notes. The first paper bills were used by the chinese as early as a.d.
Introduction This Paper Tells A Story On How Paper Money Was Created.
Originated as a receipt issued by goldsmiths. After all, paper is much lighter than coins! The first paper currency issued by european governments was actually issued by their colonial governments in north america.
The Paper Also Examines The Possibility Of Issuing Inconvertible Notes And Shows That While.
Paper money took the form of bank notes which were not mere substitutes but were considered as an addition to the supply of money. By the time marco polo visited in 1271 a.d., the emperor had a good handle on both money supply and various denominations. 618, though the notes were issued by private parties instead of a central authority.
This Paper Uses An Evolutionary Approach To Explain The Origin Of Money As Media Of Exchange In A Primitive Economy, Where Agents Specialize In Production For.
This way it describes how. The evolution of paper money. Before money was invented, exchange took place by barter, that is, commodities and services were directly exchanged for commodities and services.