Financial Crisis Across The World Since Currency Essay

2225 WordsNov 13, 20169 Pages
There has been financial crisis across the world since currency came about. It started with the barter system which allowed people to trade goods and services but this sometimes proved to be more difficult than beneficial. Then around 600 B.C., coins and currency came about. Since then currency went from being precious metals to paper money. With the development of currency, came international trade. “Banks and the ruling classes started buying currencies from other nations and created the first currency market. The stability of a particular monarchy or government affected the value of the country 's currency and the ability for that country to trade on an increasingly international market. The competition between countries often led to currency wars, where competing countries would try to affect the value of the competitor 's currency by driving it up and making the enemy 's goods too expensive, by driving it down and reducing the enemy 's buying power (and ability to pay for a war), or by eliminating the currency completely” (Beattie, 2007). Money gets its value by being a medium of exchange, a unit of measurement and a storehouse for wealth. Money allows people to trade goods and services indirectly and understand the price of goods. We can see the evidence of financial crisis throughout time with the “credit crisis of 2007-2008” and the “Russian Crisis of 1998” and its global impact. Although Russia was experiencing economic growth in 1997 “…the country’s fixed exchange
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