| Revision as of 23:51, 11 August 2022 editLizardJr8 (talk | contribs)Extended confirmed users, Pending changes reviewers, Rollbackers97,226 editsm Reverted edits by 103.162.91.106 (talk): addition of unnecessary/inappropriate external links (HG) (3.4.10)Tag: Rollback← Previous edit | Revision as of 17:47, 20 August 2022 edit undoFresheneesz (talk | contribs)Extended confirmed users9,055 edits Correcting incorrect statement about clay tokens being used as representative money. The source given only says "probably" and does not have a supporting source or supporting evidence given. I gave a source directly contradicting that.Next edit → | ||
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| |publisher=Macmillan & Co Ltd}}</ref> | |publisher=Macmillan & Co Ltd}}</ref> | ||
| There is no concrete evidence that the clay tokens used as an accounting tool to keep track of warehouse stores in ancient Mesopotamia were also used as representative money, | |||
| Historically, the use of representative money predates the invention of ]age. In the ancient empires of Egypt, Babylon, India and China, the temples and palaces often had commodity warehouses which issued certificates of deposit as evidence of a claim upon a portion of the goods stored in the warehouses, a form of "representative money".<ref name=mundell/> | |||
| <ref name="Schmandt-Besserat">, </ref><ref>Keynes, J.M. (1930). ''A Treatise on Money''. Volume I, p. 13 | |||
| </ref> | |||
| According to economist ] (1875), representative money in the form of ] arose because metal coins often were "variously clipped or depreciated" during use, but representative money could not have its face value thus divided.<ref>], ''Money and the Mechanism of Exchange'', Chapter XVI, "Representative Money"</ref> | |||
| however the idea has been suggested.<ref name=mundell/> | |||
| In 1895 economist ] wrote that credit expansion and contraction was in fact the expansion and contraction of representative money.<ref>], ''A treatise on money and essays on monetary problems''], Chapter VI, Effects of Credit or "Representative Money" on prices, , A. and C. Black, 1895.</ref> | In 1895 economist ] wrote that credit expansion and contraction was in fact the expansion and contraction of representative money.<ref>], ''A treatise on money and essays on monetary problems''], Chapter VI, Effects of Credit or "Representative Money" on prices, , A. and C. Black, 1895.</ref> | ||
Revision as of 17:47, 20 August 2022
Any type of money that has face value greater than its value as material substance
Representative money or receipt money is any medium of exchange, printed or digital, that represents something of value, but has little or no value of its own (intrinsic value). Unlike some forms of fiat money (which may have no commodity backing), genuine representative money must have something of intrinsic value supporting the face value.
More specifically, the term representative money has been used variously to mean:
- A claim on a commodity, for example gold and silver certificates. In this sense it may be called "commodity-backed money".
- Any type of money that has face value greater than its value as material substance. Used in this sense, most types of fiat money are a type of representative money.
There is no concrete evidence that the clay tokens used as an accounting tool to keep track of warehouse stores in ancient Mesopotamia were also used as representative money, however the idea has been suggested.
In 1895 economist Joseph Shield Nicholson wrote that credit expansion and contraction was in fact the expansion and contraction of representative money.
In 1934 economist William Howard Steiner wrote that the term was used "at one time to signify that a certain amount of bullion was stored in the Treasury while the equivalent paper in circulation" represented the bullion.
See also
References
- ^ Robert A. Mundell, The Birth of Coinage, Discussion Paper #:0102-08, Department of Economics, Columbia University, February 2002.
- Jon Hooks, Economics:fundamentals for financial services providers, p. 201 ISBN 0-89982-494-3, ISBN 978-0-89982-494-9 Retrieved September 9, 2009
- ^ William Howard Steiner, Money and banking, p. 30, H. Holt and company, 1941.
- John Maynard Keynes (1965) . "1. The Classification of Money". A Treatise on Money. Vol. 1. Macmillan & Co Ltd. p. 7.
Fiat Money is Representative (or token) Money (i.e something the intrinsic value of the material substance of which is divorced from its monetary face value)
- Denise Schmandt-Besserat, Tokens: their Significance for the Origin of Counting and Writing
- Keynes, J.M. (1930). A Treatise on Money. Volume I, p. 13
- Joseph Shield Nicholson, A treatise on money and essays on monetary problems], Chapter VI, Effects of Credit or "Representative Money" on prices, pp. 72–74, A. and C. Black, 1895.
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