How Did Marco Polo Affect The Economy

During the rule of Justinian (527-565 CE) this empire was expanded to the greatest size that it would ever reach. Because it was so big, Justinian assigned two capitals for the empire, and as this happened, there was transfer of goods and technologies through both capitals. Because the empire was so big and the amount of merchandise and money that was managed through the empire was so broad, Justinian implemented the use of banking, which changed completely the way people earned money, saved their money, and traded goods to get money from them to bank it. As this happened in the Byzantine Empire, China fell into a cultural exchange of goods, technologies, and ideas that came from the Silk Roads. It was during the Tang and Song dynasties that this trade was at its peak. At the time, besides receiving goods from Europe and other neighbors through the complex routes of trading, the Chinese developed their own technologies for their own exportation. Among these technologies there was large metallurgical production, invention of gunpowder, naval technologies, rapid and cheap printing, and porcelain. These technologies enhanced even more trade for China and due to this, paper money was invented for the purpose of controlling trade; the same thing that occurred with the Byzantine Empire and banking. Even though China invented more technologies than the Byzantine Empire, both became major trade hotspots in their own way and invented systems to

In document 3, Wang Xijue speaks to explain that the grain was always so cheap, they never paid attention to the silver coin, but since the government needs the silver to pay for their taxes, many of the tillers in the soil are lowered, and less land is put into cultivation. In document 5, a writer, Xu Dunqiu Ming, says that every time that you dye a cloth with rice, wheat, chickens, or other fowl, you must pay with silver from a moneylender. And lastly, in document 6, a spanish priest is emotional about the fact that the more than 3,000 Indians are put to work when there is 326 million coins that have been taken out of the silver

During the Crusades, Europeans brought luxury good from Italian merchants, who got them from Arab traders; Europeans taste for luxury items greatly increased. During the 13th and 14th explorers like Marco Polo claimed that Asia had the luxury goods the Europeans desired. This began the race towards finding a trade route to Asia. Christopher Columbus and many other explorer seek funds from Kings,Queens, and wealthy businessman to fund their explorations. After gaining funds from the King and Queen of Spain .Columbus set sail off on August 3, 1492 from Spain to investigate this a all-water route to Asia. This letter written by Columbus foreshadows the clash of two completely different cultures.

In document 8, they invested most of the silver towards items such as cloth and silk, which are things

currency, shops gave a bill that was to be paid with more silver that was obtained from a

It was one of the earliest monetary policies to institute the circulation of paper money on a national level. Customers would deposit their gold coins for storage into a bank for a small fee. In return, they received bank receipts, which were then used as paper money in place of valuable elements like gold. The idea of using bank notes as paper money quickly gained popularity because they were, of course, much easier and more convenient to transport and exchange than heavy gold coins.

“…put a match to it. One hundred twenty-three dollars in legal tender was promptly reduced to ash and smoke” (29).

Ever since 1690, when the first paper money was issued by the Massachusetts Bay Colony, paper money has been constantly changing. Throughout the history of the United States paper money, the United States has gone through different types of currency. The different types of currency ranged from State Bank Notes to Gold Certificates to National Bank Notes to Silver Certificates to Federal Reserve Bank Notes, and now ending with Federal Reserve Notes. However, in the mean time counterfeit money had been gaining circulation and “thirty-six percent of the dollar value of known counterfeit currency passed in the U.S. was produced overseas, particularly in Colombia, Italy, Hong Kong, the Philippines and Bangkok” (Fun Facts About Money). In

The Chinese were greatly influenced because of trade. Marco Polo was a political influence because of trade. He left Venice, and crossed Persia and Central Asia to reach China. He then spent seventeen years in the emperor's service. Finally Marco Polo returned home and wrote an account of the splendor and wealth of China, which would not become popular until the printing press invention.

hundred twenty-three dollars in legal tender was promptly reduced to ashes and smoke” (P. 29). Chris

By establishing the first known example of bimetallism, Croesus alleviated problems inherent to the first implementation of coinage and contributing to its defining characteristics 80 years after its inception. However, even after solving the problem of over-valuation, weighed bullion persisted as a transactional medium in both the eastern and western Greek world . Hoard at Colophon and Caria show that two forms of silver money, old silver bullion and new coined silver, were saved together, meaning both were acceptable storage of wealth . Thus, even after western Greek cities began issuing coinage, traditional mediums of exchanged were still valid and important for ancient economies. Despite Croesus’ contributions to coinage and its obvious benefits, the continued prevalence of old forms of money suggest that there was more to the adoption of coinage than simply facilitating exchange.

Monetary values have changed throughout history because problems presented in each system of commerce. Bartering was among the earliest forms of commerce to present a problem. It did not establish monetary value in anything specific, allowing an individual’s wants or needs to be deemed monetary values. Each seller could make exchange requests based on different things. For example, a starving man could deem grain a commodity if he only manufactures luxury goods. Based on his hunger, the starving man can request to make an exchange of his luxury good with farmers for grain. Given that luxury goods are not a necessity, nor desired by everyone, the farmers can refuse his offer. The man would have to barter with a third party to acquire whatever the farmers were willing to make an exchange for. Inconsistent commodities in bartering made transactions inefficient because it could require multiple exchanges. Standards were established to combat the inefficiency of bartering through establishing value in one set commodity that all would accept. With a standard, the man could obtain grain directly from the farmers because it is mandated that the standard be accepted as debt payment. Therefore, it is more efficient to have a standard which only requires one transaction than to barter. For a matter of convenience, value transferred from virtually any object to specific resources. A common resource used for standards is metal. In early empires and recent nations, gold and/or silver

When the French tried to impose their franc on the population, they prohibited the use of cowries as transaction money. The people of Volta resisted because they believed it would diminish the value of the cowries they held. Hoarding of cowries thus became popular by village Elders. Upon France’s colonization of the Volta, they had brought with them the purchasing power of their soldiers, teachers, interpreters, and others, so that initially the arrival of the French along with their new money (the franc) and its availability, caused the franc to appreciate. Later when the volume of francs reached saturation, additional quantities of francs introduced into the market system began to depreciate its monetary value (Saul 2004: 93,94).

He continued the usage of a paper currency which gave foreign traders a reason to trade within his Kingdom. He also introduced the Office for the Stimulation of Agriculture which helped China recover and trade with Asia. Allowing foreigners to have influential government positions and designating areas for foreigners to trade encouraged traders to come to China. Some of these traders would later go on and trade from Africa to India. Furthermore, the reputation that Russia created of the Mongols propelled Europe to contact China. Because of how welcoming Kublai Khan was to the Europeans, these communications would lead to trading that would last beyond the Yuan dynasty. Marco Polo would travel to Kublai Khan’s palace and the European age of exploration would begin. Christopher Columbus would search for a sea route that would connect Europe to South Asia These communications would lead to trading that would last beyond the Yuan dynasty and would lead to the Marco Polo’s travels and the European age of

The next stage in the growth of banking was the goldsmith. The business of goldsmith was such that he had to take special precautions against theft of gold and jewellery. If he seemed to be an honest person, merchants in the neighborhood started leaving their bullion, money and ornaments in his care.As this practice spread, the goldsmith started charging something for taking care of the money and bullion. As evidence for receiving valuables, he issued a receipt. Since gold and silver coins had no marks of the owner, the goldsmith started lending them. As the goldsmith was prepared to give the holder of the receipt an equal amount of money on demand, the goldsmith receipts acted as cheques, medium of exchange and a means of