The word currency is used in daily conversations, it can refer to many things.But for economists, it has a specific meaning.In order to avoid confusion, it is necessary to explain that the word of currency used by economists is different from the word we use.
Currency, also known as money, referred to as money.There are many forms of currency, such as shell food and other natural objects, metal paper and other processing products, bank card credit cards and other magnetic strip cards, mobile payment, cryptocurrency, etc.The attributes of the currency are constantly evolving due to the rise and fall of the economic system, such as the rise of the gift economy derived from physical currency; the rise of the commodity economy is derived from metal currency;Out of the sovereign currency.
At different stages and regions of human history, currencies have appeared in various forms.Because people are in different economic environments, they will reach consensus on different media products.It can be precious metals and even ordinary metals, or it can be valuable people’s livelihood necessities.Such as: the shells of the primitive society, the mud gold cakes of the Chu State during the Warring States Period (formed after being burned after being made, symbolizing the golden cakes), salt in the army of the Roman Empire, cigarette currencies in the concentration camp during World War II, and even Pacific Ya YaThe maximum diameter of Pu Island is 4 meters, up to 5 tons of stone wheels.New Delhi Stock Exchange
Golden cake unearthed from Ma Wangdui Han Tomb
In the commodity economy, currency is an indicator for measuring the value (price) of the sovereign state or the economy within the economy, and it is also a special product to repay debt.Currency is still used as a tool for trading medium, storage value and bookkeeping units.In the Internet era, based on certain currencies, decentralized blockchain technology is applied.
Economists define currency as anything that is generally accepted in the payment of goods and services or in debt repayment.
Currency has three major functions:
1Agra Investment. Trading medium -used to buy goods
2. Valuation unit -value scale
3. Value storage -preservation or value -added
Currency includes currency, especially legal currency -legal currency, as well as various savings deposits.In the field of modern economy, only a small part of the currency field is displayed in a physical currency, namely banknotes or coins (early gold and silver standard currency, today’s "banknotes" trading type)Some transactions use checks or electronic currencies.
Usually, each country only uses the only currency.The currency is forcibly issued and controlled by the authorities’ central bank agencies. The central bank has the right to determine the face value and circulation of the country’s currency, but it does not have the right to determine the market purchasing power of the currency.However, there are exceptions, that is, multiple countries can use the same currency.For example, the EU countries generally used, West African Frank, the economic community of Western African countries, and the Latin Currency Alliance in the 19th century. The names are different but can be freely circulated in the league.
A country can choose the currency of other countries as the legal circulation currency, for example, Panama chose US dollars as a legal currency.Currency in different countries may also use the same name, such as the currency and Swiss currency before using the euro in France, Luxembourg and Belgium.
Sometimes due to special reasons, different autonomous entities in the same country may also issue different versions of currencies, such as Jersey Island and Genxi Island, which are in Britain, including England, Scottish or even remotely outdoor islands.And can be traded in other parts of the UK, but only the English pound is the internationally recognized trading currency, and other versions of the British pound may be rejected outside Britain.
Based on historical factors, there are their own monetary policies on both sides of the strait. The legal currencies in mainland India are RMBPune Investment. Because of the implementation of one country, two systems in Hong Kong and Macao, the ownership of their respective currencies is issued according to the Basic Law.Link to the US dollar, the Macau dollar is directly linked to the Hong Kong dollar, and it is indirectly linked to the US dollar.
People say in daily life usually refer to banknotes and coins, and the currency that economists say include not only banknotes and coins, but also living deposits and other things that can be used for payment.What makes things more complicated is that the word money in daily conversation is often used synonymous with wealth.
When people say that "someone is rich and he has a lot of money", they may mean that someone not only has a lot of currency and large deposits, but also stocks, bonds, cars and houses.Therefore, although the currency as "currency" is too narrow, this popular statement is too broad.Economists distinguish the currency and wealth that exist in the form of currency, current deposits, and other things that are used for payment (the total collection of various property used for storing value).Wealth includes not only currency, but also other assets, such as bonds, stocks, cars and houses.
In daily conversations, people also use the word of money to describe the income called by economists, just like in the following sentence, "Someone has a good job and earns a lot of money."flow.Instead, currency is a stock, which is a certain amount at a given time.If someone tells you that he has a income of 1,000 yuan, if you don’t know if the 1,000 yuan is made every year, every month, or daily, you cannot determine whether he earns too much or less.But if someone tells you that there is 1,000 yuan in his pocket, then you know how much it is.
In short, the currency said by economists refers to anything universal in the payment of goods and services or in debt repayment. It is different from what people say daily.Reference materials: 1. "60 practical issues of finance" Chen Linong 2. "Monetary Finance" Mishkin 3. Cultural relics from the cultural relics unearthed from Ma Wangdui Han Tomb 4Jaipur Stock. Wikipedia Encyclopedia-currency
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