The History of Money: From Barter System to Banks

The video tutorial explores the role and evolution of money in the economy. It begins by outlining the functions of money, such as a medium of exchange, measure of value, and store of value. The tutorial then delves into the history of money, from the barter system to commodity money like gold and silver. It explains the development of banknotes in China and Europe, leading to modern paper money. The transition to the gold standard and eventually to fiat money is discussed, highlighting the impact of the Bretton Woods conference and the role of central banks in assigning value to currency.

Describe the transition from commodity money to representative money.

What is fiat money and how does it differ from previous forms of money?