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
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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