M.amin
New Member
The word “money” has not always meant what it means today. Today when we use the word “money” we refer to “currency”. Both, money as well as currency used to mean very different things until about a couple of centuries ago. Prior to the monetary system that we have today, the world was on a monetary system which was called the “gold standard”. Therefore, to understand where we are today, we need to understand where we came from. This article will explain the gold standard and how it led to the modern world of freely floating currencies.
The Old Times
Trade has existed for many centuries prior to the existence of the modern world. In almost all civilizations of the world where trade happened, the concept of money evolved. The evolution of the concept of money finally led them to settle on some kind of commodity that could be used as money. In almost all civilizations, people chose gold and silver to be the money. The reasons for this are many and varied and beyond the scope of this article.
The Old Times
Trade has existed for many centuries prior to the existence of the modern world. In almost all civilizations of the world where trade happened, the concept of money evolved. The evolution of the concept of money finally led them to settle on some kind of commodity that could be used as money. In almost all civilizations, people chose gold and silver to be the money. The reasons for this are many and varied and beyond the scope of this article.
