Minor Issues Who Invented Money?
Jul 12, 2025
Explore the fascinating origins of money, revealing it as a natural solution to barter problems instead of a state invention. Discover insights from economic theorists like Cantillon and Menger, and learn how money evolved from goods to minted coins through individual choices. The discussion also touches on the use of cigarettes as currency in WWII camps. Additionally, the podcast critiques Modern Monetary Theory and argues for a return to commodity money, providing a thought-provoking lens on inflation and the future of monetary policy.
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Money Emerged Spontaneously
- Money is a spontaneous institution emerging naturally from people solving barter inefficiencies.
- No king or government designed or created money; it evolved through individual actions.
Barter's Go-Between Goods
- Early societies discovered that some goods could serve as intermediate media for trade.
- This go-between good facilitated exchange better than direct barter among goods.
Debunking Money's Royal Origin
- The popular myth that kings decreed money ignores that money had to preexist for trade and specialization.
- Significant social and economic development is a prerequisite for any form of centralized leadership or money.