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Wednesday, February 6, 2008

Need Money

Money as we know it today is a
symbol of value created by the
human imagination with no intrinsic
value of its own. A coin or paper
currency note has value because people
accept it as a symbolic medium of exchange.
The economic value of money as
measured by its purchasing power is a
subject of economic theory. However
economics does not explain how individual
human beings and societies came to accept
symbolic money as a medium of exchange
or store of value. The process of according
value to a symbol is psychological
and social. Money is a social institution
based on the consent of the population and
a psychological symbol based on the consent
of the individual.[1] Money has acquired
the all-pervasive value that it possesses
today by a slow evolutionary process
that can be most easily understood by tracing
its social and psychological origins from ancient times

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