Money!?
Money in traditional economics is defined as any medium of exchange that can be accepted. Medium of exchange that can be any object that can be accepted by everyone in the community in the process of exchange of goods and services. In modern economics, money is defined as something that is
Money in traditional economics is defined as any medium of exchange that can be accepted. Medium of exchange that can be any object that can be accepted by everyone in the community in the process of exchange of goods and services. In modern economics, money is defined as something that is
available and generally accepted as payment for the purchase of goods and services as well as other valuable property as well as for payment debt.Some experts also mentioned the function of money as a payment delay.
The existence of money provides an easier alternative transaction that is more complex than barter, inefficient, and less suitable for use in the modern economic system because it requires people who have the same desire to make the exchange and also the difficulty in determining value. Efficiency obtained using the money in the end will boost trade and division of labor which would then increase the productivity and prosperity.
At first in Indonesia, the money-in this currency, issued by the Government of the Republic of Indonesia. However, since the issuance of Law no. 13 of 1968 article 26, paragraph 1, the government's right to print money withdrawn. The Government then set a Central Bank, Bank Indonesia, as the only institution that has the right to create currency. The right to create money is called the right oktroi.
History
The money that we know it today has undergone a long development process. At first, people are not familiar with the exchange because everyone is trying to meet kebutuhannnya with their own business. Humans hunt if he was hungry, make your own clothes from simple ingredients, look for fruits for their own consumption, in short, what is gained is what used to meet his needs. Subsequent developments in the fact that human confront what is produced is not enough to meets the entire needs. To acquire goods that can not be produced by themselves, they look for people who want to exchange goods with other goods owned by him required. The result comes sistem'barter':that is goods in exchange for goods. But in the end, many of the perceived difficulties with this system. Among these are difficult to find people who have unwanted items and also want to exchange its goods and the difficulty to obtain the goods that can be interchanged with each other with the exchange value of a balanced or nearly equal value. To overcome this, the thoughts begin to arise for the use of certain objects to be used as a medium of exchange. Objects defined as an exchange of objects that are received by the public (Generally Accepted) selected objects of high value (difficult to obtain or have a magical and mystical value), or objects that is a primary need of everyday ; such as the salt used by the Romans as a medium of exchange and as a means of payment of wages. Roman influence is still visible today: the English called the wage as a salary that comes from the Latin meaning salarium salt.
Goods that are considered beautiful and valuable, like this shell, once used as a medium of exchange before humans discovered the coin.Although the medium of exchange already exists, there remain difficulties in the exchange. These difficulties were partly due to the objects used as a medium of exchange has not been broken so that the determination of the value of money, storage (storage) and transportation (transportation) to be too hard to do as well as difficulties arising from lack of durability of these objects are so easily destroyed or not durable. Then came the so-called coin. Metal was chosen as a medium of exchange because it has a high value so that the public favored, durable and not easily broken, easily broken down without reducing the value, and easily moveable. Metal is used as a medium of exchange for meeting these requirements is the gold and silver. Gold and silver coins are also referred to as full of money (full bodied money). That is, the intrinsic value (the value of materials) of money equal to its nominal value (value on the currency). At that time, everyone is entitled to forge money, merge, sell or use, and have unlimited rights in storing coins. In line with economic developments, difficulties arise when the development of an assumption exchanges are to be served with a coin increases while the amount of precious metals (gold and silver) are very limited. The use of coins is also difficult to deal large amounts of paper money that was created at first banknotes in circulation is the evidence of ownership of gold and silver as a tool / brokers to conduct transactions. In other words, paper money in circulation at that time the money is guaranteed to be 100% by gold or silver stored in the smart gold or silver and can be redeemed at any time is full of assurances. In further development, the public no longer use gold (directly) as a means of exchange. Instead, they make 'paper-proof' as a medium of exchange.
