Dating loans money
Schumpeter's theory had several themes but the most important of these involve the notions that money can be analyzed from the viewpoint of social accounting and that it is also firmly connected to the theory of value and price.There are at least two theories of what money is and these can influence the interpretation of historical and archeological evidence of early monetary systems.Because these tokens could be redeemed at the warehouse for the commodity they represented, they were able to be traded in the markets as if they were the commodity or given to workers as payment.While not the oldest form of money of exchange, various metals (both common and precious metals) were also used in both barter systems and monetary systems and the historical use of metals provides some of the clearest illustration of how the barter systems gave birth to monetary systems.Further, evidence in the histories supports the idea that money has taken two main forms divided into the broad categories of money of account (debits and credits on ledgers) and money of exchange (tangible media of exchange made from clay, leather, paper, bamboo, metal, etc.).
These included livestock and grain – things directly useful in themselves – but also merely attractive items such as cowrie shells or beads were exchanged for more useful commodities.
There is no evidence, historical or contemporary, of a society in which barter is the main mode of exchange.
However, the general presumption that monetary systems evolved from barter systems persists because it is unreasonable to presume that monetary systems magically appeared.
The psychological elements required for a barter system to exist and function are not only far simpler than those required for a simple monetary system, but every historical example of monetary systems requires and incorporates the basic psychological elements that make barter possible.
It is very simple to trade a piece of meat for a piece of fruit (even a caveman can do it), but to create and use tools to make hash marks on a stick or piece of leather to represent that someone gave you a piece of meat and now you owe them a piece of meat is a far more complex set of thought processes requiring a knowledge of making tools, knowledge of crude numerical systems, etc..