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A History of Money

A History of Money

Duncan Connors

(2016)

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Book Details

Abstract

A History of Money looks at how money as we know it developed through time. Starting with the barter system, the basic function of exchanging goods evolved into a monetary system based on coins made up of precious metals and, from the 1500s onwards, financial systems were established through which money became intertwined with commerce and trade, to settle by the mid-1800s into a stable system based upon Gold. This book presents its closing argument that, since the collapse of the Gold Standard, the global monetary system has undergone constant crisis and evolution continuing into the present day.


Table of Contents

Section Title Page Action Price
Cover Cover
Title FM4
Copyright FM5
Foreword FM6
Acknowledgements FM10
Contents FM12
Introduction FM18
1. The Nature and Origins of Money and Barter 1
The importance of money 1
Sovereignty of monetary policy 3
Unprecedented inflation of population 5
Barter: as old as the hills 10
Persistence of gift exchange 12
Money: barter’s disputed paternity 14
Modern barter and countertrading 19
Modern retail barter 23
Primitive money: definitions and early development 24
Economic origins and functions 28
The quality-to-quantity pendulum: a metatheory of money 31
2. From Primitive and Ancient Money to the Invention of Coinage, 3000–600 BC 35
Pre-metallic money 35
The ubiquitous cowrie 37
Fijian whales’ teeth and Yap stones 38
Wampum: the favourite American-Indian money 41
Cattle: man’s first working-capital asset 43
Pre-coinage metallic money 46
Money and banking in Mesopotamia 49
Girobanking in early Egypt 53
Coin and cash in early China 57
Coinage and the change from primitive to modern economies 60
The invention of coinage in Lydia and Ionian Greece 63
3. The Development of Greek and Roman Money, 600 BD–AD 410 69
The widening circulation of coins 69
Laurion silver and Athenian coinage 71
Greek and metic private bankers 74
The Attic money standard 77
Banking in Delos 81
Macedonian money and hegemony 83
The financial consequences of Alexander the Great 85
Money and the rise of Rome 91
Roman finance, Augustus to Aurelian, 14 BC–AD 275 97
Diocletian and the world’s first budget, 284–305 103
Finance from Constantine to the Fall of Rome 110
The nature of Graeco-Roman monetary expansion 112
4. The Penny and the Pound in MedievalEuropean Money, 410–1485 117
Early Celtic coinage 117
Money in the Dark Ages: its disappearance and re-emergence 121
The Canterbury, Sutton Hoo and Crondall finds 122
From sceattas and stycas to Offa’s silver penny 127
The Vikings and Anglo-Saxon recoinage cycles, 789–978 132
Danegeld and heregeld, 978–1066 135
The Norman Conquest and the Domesday Survey, 1066–1087 139
The pound sterling to 1272 143
Touchstones and trials of the Pyx 148
The Treasury and the tally 152
The Crusades: financial and fiscal effects 158
The Black Death and the Hundred Years War 164
Poll taxes and the Peasants’ Revolt 172
Money and credit at the end of the Middle Ages 174
5. The Expansion of Trade andFinance, 1485–1640 181
What was new in the new era? 181
Printing: a new alternative to minting 183
The rise and fall of the world’s first paper money 186
Bullion’s dearth and plenty 189
Potosi and the silver flood 193
Henry VII: fiscal strength and sound money, 1485–1509 196
The dissolution of the monasteries 199
The Great Debasement 203
Recoinage and after: Gresham’s Law in action, 1560–1640 209
The so-called price revolution of 1540–1640 218
Usury: a just price for money 224
Bullionism and the quantity theory of money 232
Banking still foreign to Britain? 241
6. The Birth and Early Growth of British Banking, 1640–1789 247
Bank money supply first begins to exceed coinage 247
From the seizure of the mint to its mechanization, 1640–1672 249
From the great recoinage to the death of Newton, 1696–1727 254
The rise of the goldsmith-banker, 1633–1672 258
Tally-money and the Stop of the Exchequer 262
Foundation and early years of the Bank of England 265
The national debt and the South Sea Bubble 273
Financial consequences of the Bubble Act 277
Financial developments in Scotland, 1695–1789 282
The money supply and the constitution 289
7. The Ascendancy of Sterling,1789–1914 295
Gold versus paper . . . finding a successful compromise 295
Country banking and the industrial revolution to 1826 297
Currency, the bullionists and the inconvertible pound, 1783–1826 304
The Bank of England and the joint-stock banks, 1826–1850 316
Amalgamation, limited liability and the end of unit banking 328
The rise of working-class financial institutions 335
The discount houses, the money market and the bill on London 353
The merchant banks, the capital market and overseas investment 358
The final triumph of the full gold standard, 1850–1914 369
Gold reserves, tallies and the constitution 378
8. British Monetary Developmentin the Twentieth Century 381
Introduction: a century of extremes 381
Financing the First World War, 1914–1918 383
The abortive struggle for a new gold standard, 1918–1931 390
Cheap money in recovery, war and reconstruction, 1931–1951 399
Inflation and the integration of an expanding monetary system, 1951–2000 412
The monetarist experiment, 1973–1990 438
EMU: the end of the pound sterling? 461
The 2008 financial crisis and the evolution of the banking system in the twenty-first century 476
9. American Monetary Developmentsince 1700 481
Introduction: the economic basis of the dollar 481
Colonial money: the swing from dearth to excess, 1700–1775 482
The official dollar and the growth of banking up to the Civil War,1775–1861 490
From the Civil War to the founding of the ‘Fed’, 1861–1913 511
The banks through boom and slump, 1914–1944 529
Bretton Woods: vision and realization, 1944–1991 543
American banks abroad 550
From accord to deregulation, 1951–1980 555
Hazardous deposit insurance for thrifts, banks . . . and taxpayers 561
From unit banking . . . to balkanized banking 565
The great banking crisis of the twenty-first century 572
Reflating the economy? Greasing the wheels? Providing liquidity? The role of quantitative easing by the Federal Reserve after 2008 and its effect on the US dollar 577
Summary and conclusion: from beads to banks without barriers 579
10. Aspects of Monetary Development in Europe and Asia 583
Introduction: banking expertise shifts north and eastward 583
The rise of Dutch finance 585
Other early public banks 589
France’s hesitant banking progress 591
German monetary development: from insignificance to cornerstone of the EMS 603
The monetary development of Japan since 1868 619
Stagnation and the limitations of monetary policy, 1990–2014 631
The arrival of modern China, 1949 to 2014 634
11. Money and Debt in Developing Nations during the Twentieth and Twenty-First Centuries 643
Introduction: poverty in perspective 643
Stages in the drive for financial independence 648
Stage 1: Laissez-faire and the Currency Board System, c.1880–1931 650
Stage 2: The sterling area and the sterling balances, 1931–1951 654
Stage 3: Independence, planning euphoria and banking mania, 1951–1973 658
Stage 4: Market realism and financial deepening, 1973–1993 664
Debt and development: evolution of the crisis 681
The next step: the Asian financial crisis 1997 and twenty-first century debt relief for Africa and the developing world 689
Conclusion: reanchoring the runaway currencies 695
12. Further towards a Global Currency 1990–2015 699
The epoch-making euro 699
More coins in an increasingly cashless society 711
The paradox of coin: rising production – falling significance 714
Speculation and the Tobin Tax 719
Inflation redux 727
13. Conclusion: The Role of Money in a Global Economy 733
Long-term swings in the quality/quantity pendulum 734
The military and developmental money-ratchets 737
Free trade in money in a global cashless society? 741
Independent multi-state central banking 744
Final thoughts: ‘Money is coined liberty’ 748
Bibliography 755
Index 783