
The Birth of the Banknote
In this episode of the Saturday Morning Muse, Andy explores the introduction of the banknote by the Bank of England in 1694, which revolutionized modern finance by standardizing currency and formally establishing government currency backing. This historical narrative connects the evolution of banking practices to the currency we use today.
The History of Money
So what is money? Money is anything that acts as (a) a medium of exchange, (b) a measure of value, (c) a standard that can be used for credit or deferred payment, and (d) a store of value. Early coinage ticked each of these boxes.
Money also has the following properties. Money must be:
Durable
Fungible
Divisible
Portable
Acceptable
Scarce
How Trade Helped Shape the Modern World
The world you live in today is a direct outcome of advent of trade — of entrepreneurial humans recognizing that their lives can improve by trading with other groups who possess skills and/or resources that they do not. Making trade more efficient and effective has driven some of the most fundamental tools and advances we take for granted as modern humans.