Money is anything that is generally accepted as payment A payment is the transfer of wealth from one party to another. A payment is usually made in exchange for the provision of goods, services or both, or to fulfill a legal obligation for goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility. It is often used when referring to a Goods and Services Tax and repayment of debts Debt is that which is owed; usually referencing assets owed, but the term can also cover moral obligations and other interactions not requiring money. In the case of assets, debt is a means of using future purchasing power in the present before a summation has been earned. Some companies and corporations use debt as a part of their overall.^[1] The main functions of money are as a medium of exchange By contrast, as William Stanley Jevons argued, in a barter system there must be a coincidence of wants before two people can trade – one must want exactly what the other has to offer, when and where it is offered, so that the exchange can occur. A medium of exchange permits the value of goods to be assessed and rendered in terms of the, a unit of account A unit of account is a standard monetary unit of measurement of the market value/cost of goods, services, or assets. It is one of three well-known functions of money. It lends meaning to profits, losses, liability, or assets, and a store of value To act as a store of value, a commodity, a form of money, or financial capital must be able to be reliably saved, stored, and retrieved - and be predictably useful when it is so retrieved.^[2] In the past, money was almost always commodity money Commodity money is money whose value comes from a commodity out of which it is made. It is objects that have value in themselves as well as for use as money, money with intrinsic value from the commodity of which it is made (eg. gold and silver coins, shells, tobacco leaves, grain). However, modern monetary systems are based on fiat money Fiat money is money declared by a government to be legal tender. The term derives from the Latin fiat, meaning "let it be done". Fiat money achieves value because a government accepts it in payment of taxes and says it can be used within the country as a "tender" to pay all debts. In effect, this allows it to be used to buy – money without intrinsic value, but declared by a government to be legal tender Legal tender is variously defined in different jurisdictions. Formally, it is anything which when offered in payment extinguishes the debt. Thus, personal cheques, credit cards, debit cards and similar non-cash methods of payment are not usually legal tender. The law does not relieve the debt until payment is accepted. Coins and notes are usually, that is, it must be accepted as a form of payment for 'all debts, public and private'. The term "price system In economics, a price system is any economic system that effects its distribution of goods and services with prices and employing any form of money or debt tokens. Except for possible remote and primitive communities, all modern societies use price systems to allocate resources. However, price systems are not used for all resource allocation" is sometimes used to refer to methods using commodity A commodity is something for which there is demand, but which is supplied without qualitative differentiation across a market. It is a product that is the same no matter who produces it, such as petroleum, notebook paper, or milk. In other words, copper is copper. The price of copper is universal, and fluctuates daily based on global supply and valuation or money accounting systems.^[3]

The money supply Money supply data are recorded and published, usually by the government or the central bank of the country. Public- and private-sector analysts have long monitored changes in money supply because of its possible effects on the price level, inflation and the business cycle of a country is usually held to consist of currency In monetary economics Currency can refer either to a particular currency, for example British Pounds or United States Dollars, or, to the coins and banknotes of a particular currency, which comprise the monetary base of a nation’s money supply. The other part of a nation’s money supply consists of money deposited in banks , ownership of which (banknotes and coins) and 'deposit money' (the balance held in checking accounts A transactional account is a deposit account held at a bank or other financial institution, for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different channels. Because money is available on demand these accounts are also referred to as demand accounts or demand deposit accounts and savings accounts Savings accounts are accounts maintained by retail financial institutions that pay interest but can not be used directly as money . These accounts let customers set aside a portion of their liquid assets while earning a monetary return). These demand deposits Demand deposit refers to the funds held in deposit accounts, where the money in the account is legally able to be withdrawn immediately upon demand . This type of bank account, allowing immediate conversion of the account balance into cash or transfer to another account, can be contrasted with a time deposit (also known as a 'certificate of usually account for a much larger part of the money supply than currency.^[4][5] Deposit money is intangible and exists only in the form of various bank records. Despite being intangible, deposit money still performs the basic functions of money, as checks are generally accepted as a form of payment and as a means of transferring ownership of deposit money.^[6]

History of money

The use of barter Bartering is a medium in which goods or services are directly exchanged for other goods and/or services without a common unit of exchange . It can be bilateral or multilateral, and usually exists parallel to monetary systems in most developed countries, though to a very limited extent. Barter usually replaces money as the method of exchange in-like methods may date back to at least 100,000 years ago, though there is no evidence of a society or economy that relied primarily on barter.^[7] Instead, non-monetary societies operated largely along the principles of gift economics In the social sciences, a gift economy is a society where valuable goods and services are regularly given without any explicit agreement for immediate or future rewards (i.e. there is no formal quid pro quo). Ideally, simultaneous or recurring giving serves to circulate and redistribute valuables within the community. The organization of a gift. When barter did occur, it was usually between either complete strangers or potential enemies.^[8]

Many cultures around the world eventually developed the use of commodity money Commodity money is money whose value comes from a commodity out of which it is made. It is objects that have value in themselves as well as for use as money. The shekel Shekel , also rendered sheqel, refers to one of many ancient units of weight and currency. The first known usage is from Mesopotamia around 3000 BC. One explanation is given for the origination of this word as to have originally applied to a specific mass of barley, and the first syllable of the word, 'she' was Akkadian for barley. A shekel was was an ancient unit of weight and currency. The first usage of the term came from Mesopotamia Widely considered as the cradle of civilization, Bronze Age Mesopotamia included Sumer, Akkadian, Babylonian and Assyrian empires. In the Iron Age, it was ruled by the Neo-Assyrian Empire and Neo-Babylonian Empire, and later conquered by the Achaemenid Empire. It mostly remained under Persian rule until the 7th century Islamic conquest of the circa 3000 BC. and referred to a specific mass of barley Barley is a cereal grain derived from the annual grass Hordeum vulgare. It serves as a major animal feed crop, with smaller amounts used for malting and in health food. In 2007 ranking of cereal crops in the world, barley was fourth both in terms of quantity produced (136 million tons) and in area of cultivation (566,000 km²) which related other values in a metric A metric is a measure for quantitatively assessing, controlling or selecting a person, process, event, or institution, along with the procedures to carry out measurements and the procedures for the interpretation of the assessment in the light of previous or comparable assessments such as silver, bronze, copper etc. A barley/shekel was originally both a unit of currency In monetary economics Currency can refer either to a particular currency, for example British Pounds or United States Dollars, or, to the coins and banknotes of a particular currency, which comprise the monetary base of a nation’s money supply. The other part of a nation’s money supply consists of money deposited in banks , ownership of which and a unit of weight.^[9] Societies in the Americas, Asia, Africa and Australia used shell money Shell money is a medium of exchange that was once common. It consisted either of whole sea shells or pieces of them which were worked into beads or otherwise artificially shaped. The use of shells in trade began as direct commodity exchange, the shells having value as body ornamentation. The distinction between beads as commodities and beads as – usually, the shell of the money cowry Cowry, also sometimes spelled cowrie, plural always cowries, is the common name for a group of small to large sea snails, marine gastropod mollusks in the family Cypraeidae. The word "cowry" is also often used to refer to the shells of these snails (Cypraea moneta) were used.

According to Herodotus Herodotus of Halicarnassus was a Greek historian who lived in the 5th century BC (c. 484 BC–c. 425 BC) and is regarded as the "Father of History" in Western culture. He was the first historian known to collect his materials systematically, test their accuracy to a certain extent and arrange them in a well-constructed and vivid, and most modern scholars, the Lydians Lydians were the inhabitants of Lydia, a region in western Anatolia. Their capital was at Sardis. Their recorded history of statehood, which covers three dynasties, ame to an abrubt end after a military defeat in the 6th century BC, while the account of their roots, mixed with legends, reaches before the first millenium BC, and their culture were the first people to introduce the use of gold and silver coin.^[10] It is thought that these first stamped coins A coin is a piece of hard material, usually metal or a metallic material, usually in the shape of a disc, and most often issued by a government. Coins are used as a form of money in transactions of various kinds, from the everyday circulation coins to the storage of vast numbers of bullion coins. In the present day, coins and banknotes make up the were minted around 650–600 BC.^[11] Paper money or banknotes A banknote is a kind of negotiable instrument, a promissory note made by a bank payable to the bearer on demand, used as money, and in many jurisdictions is legal tender. Along with coins, banknotes make up the cash or bearer forms of all modern money. With the exception of non-circulating high-value or precious metal commemorative issues, coins were first used in China during the Song Dynasty. These banknotes, known as "jiaozi Jiaozi is a form of banknote which appeared around 10th century in the Sichuan capital of Chengdu, China. Most numismatists generally regard it as the first paper money in history, a development of the Chinese Song Dynasty (960 - 1279 AD)" evolved from promissory notes A promissory note, referred to as a note payable in accounting, is a contract where one party makes an unconditional promise in writing to pay a sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms. They differ from IOUs in that they contain a specific promise to pay, used since the 7th century. However, they did not displace commodity money, and were used alongside coins. Banknotes were first issued in Europe by Stockholms Banco Stockholms Banco in Sweden was the first European bank to print banknotes. The bank was founded in 1657 by Johan Palmstruch and began printing banknotes in 1661. It was to be the precursor to the Sveriges Riksbank, the central bank of Sweden in 1661.

Etymology

The word "money" is believed to originate from a temple of Hera In the Olympian pantheon of classical Greek Mythology, Hera or Here (Ήρη in Ionic and Homer) was the wife and older sister of Zeus. Hera is the Goddess of Childbirth and Marriage. In Roman mythology, Juno was the equivalent mythical character. Hera, wanting to set a good example to the gods, goddesses, and mortals, chose the cow as one of her, located on Capitoline The Capitoline Hill , between the Forum and the Campus Martius, is one of the seven hills of Rome. By the 16th century, Capitolinus had become Campidoglio in the Roman dialect. The English word capitol derives from Capitoline. The Capitoline contains few ancient ground-level ruins, as they are almost entirely covered up by Medieval and Renaissance, one of Rome's seven hills. In the ancient world Hera was often associated with money. The temple of Juno Moneta Juno was an ancient Roman goddess, the protector and special counselor of the state. She is a daughter of Saturn and sister of the chief god Jupiter and the mother of Juventas, Mars, and Vulcan. Her Greek equivalent is Hera at Rome was the place where the mint of Ancient Rome was located.^[12] The name "Juno" may derive from the Etruscan goddess Uni Uni was the supreme goddess of the Etruscan pantheon and the patron goddess of Perugia. Uni was identified by the Etruscans as their equivalent of Juno in Roman mythology and Hera in Greek mythology (which means "the one", "unique", "unit", "union", "united") and "Moneta" either from the Latin word "monere" (remind, warn, or instruct) or the Greek word "moneres" (alone, unique).

In the Western world, a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning 'in kind'.^[13]

Functions

Money is generally considered to have the following functions, which are summed up in a rhyme A rhyme is a repetition of similar sounds in two or more words and is most often used in poetry and songs. The word "rhyme" may also refer to a short poem, such as a rhyming couplet or other brief rhyming poem such as nursery rhymes found in older economics textbooks: "Money is a matter of functions four, a medium, a measure, a standard A technical standard can also be a controlled artifact or similar formal means used for calibration. Reference Standards and certified reference materials have an assigned value by direct comparison with a reference base. A primary standard is usually under the jurisdiction of a national standards body. Secondary, tertiary, check standards and, a store." That is, money functions as a medium of exchange By contrast, as William Stanley Jevons argued, in a barter system there must be a coincidence of wants before two people can trade – one must want exactly what the other has to offer, when and where it is offered, so that the exchange can occur. A medium of exchange permits the value of goods to be assessed and rendered in terms of the, a unit of account A unit of account is a standard monetary unit of measurement of the market value/cost of goods, services, or assets. It is one of three well-known functions of money. It lends meaning to profits, losses, liability, or assets, a Standard of deferred payment A standard of deferred payment is the accepted way, in a given market, to settle a debt. For example, while the gold standard reigned, gold or any currency convertible to gold at a fixed rate constituted such a standard. As of 2003, the US dollar and the euro are the most generally accepted standards for international settlements, and a store of value To act as a store of value, a commodity, a form of money, or financial capital must be able to be reliably saved, stored, and retrieved - and be predictably useful when it is so retrieved.^[14] However, most modern textbooks now list only three functions, that of medium of exchange By contrast, as William Stanley Jevons argued, in a barter system there must be a coincidence of wants before two people can trade – one must want exactly what the other has to offer, when and where it is offered, so that the exchange can occur. A medium of exchange permits the value of goods to be assessed and rendered in terms of the, unit of account A unit of account is a standard monetary unit of measurement of the market value/cost of goods, services, or assets. It is one of three well-known functions of money. It lends meaning to profits, losses, liability, or assets, and store of value To act as a store of value, a commodity, a form of money, or financial capital must be able to be reliably saved, stored, and retrieved - and be predictably useful when it is so retrieved.^[2][15][16]

There have been many historical disputes regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange is in conflict with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate.^[14] Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time.^[17] The term 'financial capital' is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender.

Medium of exchange

When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the 'double coincidence of wants' problem.

Unit of account

A unit of account is a standard numerical unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. To function as a 'unit of account', whatever is being used as money must be:

• Divisible into smaller units without loss of value; precious metals can be coined from bars, or melted down into bars again.
• Fungible: that is, one unit or piece must be perceived as equivalent to any other, which is why diamonds, works of art or real estate are not suitable as money.
• A specific weight, or measure, or size to be verifiably countable. For instance, coins are often made with ridges around the edges, so that any removal of material from the coin (lowering its commodity value) will be easy to detect.

Store of value

To act as a store of value, a commodity, a form of money, or financial capital must be able to be reliably saved, stored, and retrieved — and be predictably useful when it is so retrieved. Fiat currency like paper or electronic money no longer backed by gold in most countries is not considered by some economists to be a store of value.

Money Supply

In economics, money is a broad term that refers to any financial instrument that can fulfill the functions of money (detailed above). These financial instruments together are collectively referred to as the money supply of an economy. Since the money supply consists of various financial instruments (usually currency, demand deposits and various other types of deposits), the amount of money in an economy is measured by adding together these financial instruments creating a monetary aggregate. Modern monetary theory distinguishes among different types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money.

Market liquidity

Market liquidity describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognised and accepted as the common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter.

Liquid financial instruments are easily tradable and have low transaction costs. There should be no (or minimal) spread between the prices to buy and sell the instrument being used as money.

Measures of money

The money supply is the amount of financial instruments within a specific economy available for purchasing goods or services. The money supply is usually measured as three escalating categories M1, M2 and M3. The categories grow in size with M1 being currency (coins and bills) and checking account deposits. M2 is currency, checking account deposits and savings account deposits, and M3 is M2 plus time deposits. M1 includes only the most liquid financial instruments, and M3 relatively illiquid instruments.

Another measure of money, M0, is also used, although unlike the other measures, it does not represent actual purchasing power by firms and households in the economy. M0 is base money, or the amount of money actually issued by the central bank of a country. It is measured as currency plus deposits of banks and other institutions at the central bank. M0 is also the only money that can satisfy the reserve requirements of commercial banks.

Types of money

Currently, most modern monetary systems are based on fiat money. However, for most of history, almost all money was commodity money, such as gold and silver coins. As economies developed, commodity money was eventually replaced by representative money, such as the gold standard, as traders found the physical transportation of gold and silver burdensome. Fiat currencies gradually took over in the last hundred years, especially since the breakup of the Bretton Woods system in the early 1970s.

Commodity money

Commodity money value comes from the commodity out of which it is made. The commodity itself constitutes the money, and the money is the commodity.^[18] Examples of commodities that have been used as mediums of exchange include gold, silver, copper, rice, salt, peppercorns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, candy, barley, etc. These items were sometimes used in a metric of perceived value in conjunction to one another, in various commodity valuation or Price System economies. Use of commodity money is similar to barter, but a commodity money provides a simple and automatic unit of account for the commodity which is being used as money.

Representative money

Representative money is money that consists of token coins, other physical tokens such as certificates, and even non-physical "digital certificates" (authenticated digital transactions) that can be reliably exchanged for a fixed quantity of a commodity such as gold, silver or potentially water, oil or food. Representative money thus stands in direct and fixed relation to the commodity which backs it, while not itself being composed of that commodity.^[19]

The gold standard, based on paper notes that are normally freely convertible into fixed quantities of gold, is the most common form of representative money. It was adopted by most of the industrialized countries during the 18th and 19th centuries.^[20]

Fiat money

Fiat money or fiat currency is money whose value is not derived from any intrinsic value or guarantee that it can be converted into a valuable commodity (such as gold). Instead, it has value only by government order (fiat). Usually, the government declares the fiat currency (typically notes and coins from a central bank, such as the Federal Reserve System in the U.S.) to be legal tender, making it unlawful to not accept the fiat currency as a means of repayment for all debts, public and private.^[21][22]

Fiat money may be symbolic of a commodity (e.g. the UK Pound sterling), but it does not carry a guarantee that it can be traded directly for fixed quantities of anything, other than the same government's money. Fiat monies usually trade against each other in an international market, and can change value, as with other goods. Thus the number of U.S. dollars or Japanese yen which are equivalent to each other, or to a gram of gold, are all market decisions which change from moment to moment. An exception to this is when a government implements a fixed exchange rate, and locks the value of its currency versus the currency of another (usually larger) trading partner. For example, the Belize dollar trades in fixed proportion (at 2:1) to the U.S. dollar.

Fiat money, if physically represented in the form of currency (paper or coins) can be accidentally damaged or destroyed. However, fiat money has an advantage over representative or commodity money, in that the same laws that created the money can also define rules for its replacement in case of damage or destruction. For example, the U.S. government will replace mutilated Federal Reserve notes (U.S. fiat money) if at least half of the physical note can be reconstructed, or if it can be otherwise proven to have been destroyed.^[23] By contrast, commodity money which has been lost or destroyed cannot be recovered.

Credit money

Credit money is any claim against a physical or legal person that can be used for the purchase of goods and services.^[18] Credit money differs from commodity and fiat money in two ways: It is not payable on demand (although in the case of fiat money, "demand payment" is a purely symbolic act since all that can be demanded is other types of fiat currency) and there is some element of risk that the real value upon fulfillment of the claim will not be equal to real value expected at the time of purchase.^[18]

This risk comes about in two ways and affects both buyer and seller. First it is a claim and the claimant may default (not pay). High levels of default have destructive supply side effects. If manufacturers and service providers do not receive payment for the goods they produce, they will not have the resources to buy the labor and materials needed to produce new goods and services. This reduces supply, increases prices and raises unemployment, possibly triggering a period of stagflation. In extreme cases, widespread defaults can cause a lack of confidence in lending institutions and lead to economic depression. For example, abuse of credit arrangements is considered one of the significant causes of the Great Depression of the 1930s.^[24]

The second source of risk is time. Credit money is a promise of future payment. If the interest rate on the claim fails to compensate for the combined impact of the inflation (or deflation) rate and the time value of money, the seller will receive less real value than anticipated. If the interest rate on the claim overcompensates, the buyer will pay more than expected. The process of fractional-reserve banking has a cumulative effect of money creation by banks.

Monetary policy

When gold and silver are used as money, the money supply can grow only if the supply of these metals is increased by mining. This rate of increase will accelerate during periods of gold rushes and discoveries, such as when Columbus discovered the new world and brought back gold and silver to Spain, or when gold was discovered in California in 1848. This causes inflation, as the value of gold goes down. However, if the rate of gold mining cannot keep up with the growth of the economy, gold becomes relatively more valuable, and prices (denominated in gold) will drop, causing deflation. Deflation was the more typical situation for over a century when gold and paper money backed by gold were used as money in the 18th and 19th centuries.

Modern day monetary systems are based on fiat money and are no longer tied to the value of gold. The control of the amount of money in the economy is known as monetary policy. Monetary policy is the process by which a government, central bank, or monetary authority manages the money supply to achieve specific goals. Usually the goal of monetary policy is to accommodate economic growth in an environment of stable prices. For example, it is clearly stated in the Federal Reserve Act that the Board of Governors and the Federal Open Market Committee should seek “to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.”^[25]

A failed monetary policy can have significant detrimental effects on an economy and the society that depends on it. These include hyperinflation, stagflation, recession, high unemployment, shortages of imported goods, inability to export goods, and even total monetary collapse and the adoption of a much less efficient barter economy. This happened in Russia, for instance, after the fall of the Soviet Union.

Governments and central banks have taken both regulatory and free market approaches to monetary policy. Some of the tools used to control the money supply include:

• changing the interest rate at which the government loans or borrows money
• currency purchases or sales
• increasing or lowering government borrowing
• increasing or lowering government spending
• manipulation of exchange rates
• raising or lowering bank reserve requirements
• regulation or prohibition of private currencies
• taxation or tax breaks on imports or exports of capital into a country

In the US, the Federal Reserve is responsible for controlling the money supply, while in the Euro area the respective institution is the European Central Bank. Other central banks with significant impact on global finances are the Bank of Japan, People's Bank of China and the Bank of England.

For many years much of monetary policy was influenced by an economic theory known as monetarism. Monetarism is an economic theory which argues that management of the money supply should be the primary means of regulating economic activity. The stability of the demand for money prior to the 1980s was a key finding of Milton Friedman and Anna Schwartz^[26] supported by the work of David Laidler,^[27] and many others. The nature of the demand for money changed during the 1980s owing to technical, institutional, and legal factors and the influence of monetarism has since decreased.

See also

• Coin of account
• Counterfeit#Counterfeiting of Money
• Currency market
• Electronic money
• Fractional reserve banking
• Full reserve banking
• Labor-time voucher
• Local Exchange Trading Systems
• Monetary economics
• Non-market economics
• Numismatics — Collection and study of money
• Seignorage
• World currency

References

1. ^ Mishkin, Frederic S. (2007). The Economics of Money, Banking, and Financial Markets (Alternate Edition). Boston: Addison Wesley. p. 8. ISBN 0-321-42177-9.
2. ^ ^{a b} Mankiw, N. Gregory (2007). Macroeconomics (6th ed.). New York: Worth Publishers. ISBN 0-7167-6213-7.
3. ^ http://www.britannica.com/EBchecked/topic/475822/price-system Retrieved June-10-2009
4. ^ "Learn More About Coins and Money — Treasure Trove - Philadelphia Fed". Philadelphia Fed.. http://www.philadelphiafed.org/education/money-in-motion/treasure-trove/. Retrieved on 2009-04-20.
5. ^ "On2 Money / A History of Money". Pbs.org. http://www.pbs.org/newshour/on2/money/history.html. Retrieved on 2009-04-20.
6. ^ Bernstein, Peter, A Primer on Money and Banking, and Gold, Wiley, 2008 edition, pp29-39
7. ^ Mauss, Marcel. 'The Gift: The Form and Reason for Exchange in Archaic Societies.' pp. 36-37.
8. ^ Graeber, David. 'Toward an Anthropological Theory of Value'. pp. 153-154.
9. ^ Kramer, History Begins at Sumer, pp. 52–55.
10. ^ Herodotus. Histories, I, 94
11. ^ "Goldsborough, Reid. "World's First Coin"". Rg.ancients.info. 2003-10-02. http://rg.ancients.info/lion/article.html. Retrieved on 2009-04-20.
12. ^ D'Eprio, Peter & Pinkowish, Mary Desmond (1998). What Are The Seven Wonders Of The World? First Anchor Books, p.192. ISBN 0-385-49062-3
13. ^ "Online Etymology Dictionary". Etymonline.com. http://www.etymonline.com/index.php?search=specie&searchmode=phrase. Retrieved on 2009-04-20.
14. ^ ^{a b} T.H. Greco. Money: Understanding and Creating Alternatives to Legal Tender, White River Junction, Vt: Chelsea Green Publishing (2001). ISBN 1-890132-37-3
15. ^ Krugman, Paul & Wells, Robin, Economics, Worth Publishers, New York (2006)
16. ^ Abel, Andrew; Bernanke, Ben (2005). "7". Macroeconomics (5th ed.). Pearson. pp. p.266-269.
17. ^ Theory of Money and Credit – Library of Economics and Liberty
18. ^ ^{a b c} Mises, Ludwig von. The Theory of Money and Credit, (Indianapolis, IN: Liberty Fund, Inc., 1981), trans. H. E. Batson. Available online here [1]; accessed 9 May 2007; Part One: The Nature of Money, Chapter 3: The Various Kinds of Money, Section 3: Commodity Money, Credit Money, and Fiat Money, Paragraph 25.
19. ^ Jevons, William Stanley (1875). "XVI: Representative Money". Money and the Mechanism of Exchange. http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Ftitle=318&chapter=9990&layout=html&Itemid=27. Retrieved on 2009-06-28.
20. ^ Michaels, Walter Benn. "The Gold Standard and the Logic of Naturalism". Representations (University of California Press) (9): 105-132. http://www.jstor.org/stable/3043767. Retrieved on 2009-06-18.
21. ^ Deardorff, Prof. Alan V. (2008). "Deardorff's Glossary of International Economics". Department of Economics, University of Michigan. http://www-personal.umich.edu/~alandear/glossary/f.html. Retrieved on 2008-07-12.
22. ^ Black, Henry Campbell (1910). "A Law Dictionary Containing Definitions Of The Terms And Phrases Of American And English Jurisprudence, Ancient And Modern", page 494. West Publishing Co. Black’s Law Dictionary defines the word "fiat" to mean "a short order or warrant of a Judge or magistrate directing some act to be done; an authority issuing from some competent source for the doing of some legal act"
23. ^ Shredded & mutilated: Mutilated Currency, Bureau of Engraving and Printing. Retrieved 2007-05-09.
24. ^ Barry Eichengreen and Kris Mitchener, "The Great Depression as a credit boom gone wrong", Bank For International Settlements, Working Papers No. 137 (September 2003). Retrieved 2007-05-08.
25. ^ The Federal Reserve. 'Monetary Policy and the Economy". (PDF) Board of Governors of the Federal Reserve System, (2005-07-05). Retrieved 2007-05-15.
26. ^ Milton Friedman, Anna Jacobson Schwartz, (1971). Monetary History of the United States, 1867–1960. Princeton, N.J: Princeton University Press. ISBN 0-691-00354-8.
27. ^ David Laidler, (1997). Money and Macroeconomics: The Selected Essays of David Laidler (Economists of the Twentieth Century). Edward Elgar Publishing. ISBN 1-85898-596-X.

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