The Modernization Of Money And Interest Essay

2386 WordsOct 7, 201610 Pages
Introduction: The modernization of money and interest never takes a smooth path: sometimes it breeds prosperity, but the next time it may bring catastrophe. As with fire, economists and policymakers throughout the financial history keep monitoring and intervening in money and interest, trying to grasp these tools but not get hurt: governments interpret underlying signals sent by interest and implement monetary policies to boost economic growth and avoid aberrations. Past failures in financial history have proved that the current understandings of money and interest need further adjustments. Therefore, how do money, interest rates, and financial system really interact with each other? To answer this question, people had better delve back into history and exhume new remains from those ruins. This research is intended to make some contributions: the very financial environments require the abstraction of money, and this development provokes revolutions in the nature of money and in the expression of interest, leading to stronger economic vitality and more severe endogenous threats. The Birth: Calves as Interest During the time of Mesopotamian civilization, people usually borrowed and lent agriculture factors to each other as a means of supporting their own production or surviving unexpected disasters. However, repayments were often accompanied by an extra portion of the loans. This idea of compensation for lending was embodied on the Drehem Tablet written during the third
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