Representative money: Difference between revisions
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imported>Zero Contradictions Changing short description from "Any type of money that has face value greater than its value as material substance" to "Money whose face value is greater than its physical value" |
imported>Fabiana MM Specified that Joseph Shield Nicholson was English |
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More specifically, the term ''representative money'' has been used variously to mean: | More specifically, the term ''representative money'' has been used variously to mean: | ||
* A claim on a commodity, for example [[gold certificate|gold]] and [[silver certificate]]s.<ref name="mundell">Robert A. Mundell, [http://academiccommons.columbia.edu/download/fedora_content/download/ac:114139/CONTENT/econ_0102_08.pdf The Birth of Coinage], Discussion Paper #:0102-08, Department of Economics, [[Columbia University]], February 2002.</ref><ref>Jon Hooks, ''Economics:fundamentals for financial services providers'', [https://books.google.com/books?id=wfbfki5YB0UC&dq=Money+representative&pg=PA201 p. 201] {{ISBN|0-89982-494-3}}, {{ISBN|978-0-89982-494-9}} Retrieved September 9, 2009</ref><ref name="p.30">William Howard Steiner, ''Money and banking'', [https://books.google.com/books?id=gq6CAAAAIAAJ&q=representative+money p. 30], H. Holt and company, 1941.</ref> In this sense it may be called "[[Monetary system#Commodity-backed money|commodity-backed money]]". | * A claim on a commodity, for example [[gold certificate|gold]] and [[silver certificate]]s.<ref name="mundell">Robert A. Mundell, [http://academiccommons.columbia.edu/download/fedora_content/download/ac:114139/CONTENT/econ_0102_08.pdf The Birth of Coinage] {{Webarchive|url=https://web.archive.org/web/20171216070632/https://academiccommons.columbia.edu/download/fedora_content/download/ac:114139/CONTENT/econ_0102_08.pdf |date=2017-12-16 }}, Discussion Paper #:0102-08, Department of Economics, [[Columbia University]], February 2002.</ref><ref>Jon Hooks, ''Economics:fundamentals for financial services providers'', [https://books.google.com/books?id=wfbfki5YB0UC&dq=Money+representative&pg=PA201 p. 201] {{ISBN|0-89982-494-3}}, {{ISBN|978-0-89982-494-9}} Retrieved September 9, 2009</ref><ref name="p.30">William Howard Steiner, ''Money and banking'', [https://books.google.com/books?id=gq6CAAAAIAAJ&q=representative+money p. 30], H. Holt and company, 1941.</ref> In this sense it may be called "[[Monetary system#Commodity-backed money|commodity-backed money]]". | ||
* Any type of [[money]] that has face value greater than its value as material substance. Used in this sense, most types of [[fiat money]] are a type of representative money.<ref>{{cite book | * Any type of [[money]] that has face value greater than its value as material substance. Used in this sense, most types of [[fiat money]] are a type of representative money.<ref>{{cite book | ||
|title=A Treatise on Money | |title=A Treatise on Money | ||
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There is no concrete evidence that the clay tokens used as an accounting tool to keep track of warehouse stores in ancient Mesopotamia were also used as representative money. | There is no concrete evidence that the clay tokens used as an accounting tool to keep track of warehouse stores in ancient Mesopotamia were also used as representative money. | ||
<ref name="Schmandt-Besserat">[https://sites.utexas.edu/dsb/ Denise Schmandt-Besserat], [https://sites.utexas.edu/dsb/tokens/tokens/ Tokens: their Significance for the Origin of Counting and Writing]</ref><ref>Keynes, J.M. (1930). ''A Treatise on Money''. Volume I, p. 13</ref> However, the idea has been suggested.<ref name=mundell/> | <ref name="Schmandt-Besserat">[https://sites.utexas.edu/dsb/ Denise Schmandt-Besserat] {{Webarchive|url=https://web.archive.org/web/20190527215448/http://sites.utexas.edu/dsb/ |date=2019-05-27 }}, [https://sites.utexas.edu/dsb/tokens/tokens/ Tokens: their Significance for the Origin of Counting and Writing] {{Webarchive|url=https://web.archive.org/web/20181128061113/https://sites.utexas.edu/dsb/tokens/tokens/ |date=2018-11-28 }}</ref><ref>Keynes, J.M. (1930). ''A Treatise on Money''. Volume I, p. 13</ref> However, the idea has been suggested.<ref name=mundell/> | ||
In 1895 economist [[Joseph Shield Nicholson]] wrote that credit expansion and contraction was in fact the expansion and contraction of representative money.<ref>[[Joseph Shield Nicholson]], ''A treatise on money and essays on monetary problems''], Chapter VI, Effects of Credit or "Representative Money" on prices, [https://archive.org/details/treatiseonmoney00nichiala/page/72 <!-- quote="representative money". --> pp. 72–74], A. and C. Black, 1895.</ref> | In 1895, English economist, [[Joseph Shield Nicholson]] wrote that credit expansion and contraction was in fact the expansion and contraction of representative money.<ref>[[Joseph Shield Nicholson]], ''A treatise on money and essays on monetary problems''], Chapter VI, Effects of Credit or "Representative Money" on prices, [https://archive.org/details/treatiseonmoney00nichiala/page/72 <!-- quote="representative money". --> pp. 72–74], A. and C. Black, 1895.</ref> | ||
In 1934 economist William Howard Steiner wrote that the term was used "at one time to signify that a certain amount of bullion was stored in the Treasury while the equivalent paper in circulation" represented the bullion.<ref name="p.30"/> | In 1934 economist William Howard Steiner wrote that the term was used "at one time to signify that a certain amount of bullion was stored in the Treasury while the equivalent paper in circulation" represented the bullion.<ref name="p.30"/> | ||
Latest revision as of 01:09, 9 September 2025
Representative money or receipt money is any medium of exchange, physical or digital, that represents something of value, but has little or no value of its own (intrinsic value). Unlike some forms of fiat money (which may have no commodity backing), genuine representative money must have something of intrinsic value supporting the face value.[1]
More specifically, the term representative money has been used variously to mean:
- A claim on a commodity, for example gold and silver certificates.[1][2][3] In this sense it may be called "commodity-backed money".
- Any type of money that has face value greater than its value as material substance. Used in this sense, most types of fiat money are a type of representative money.[4]
There is no concrete evidence that the clay tokens used as an accounting tool to keep track of warehouse stores in ancient Mesopotamia were also used as representative money. [5][6] However, the idea has been suggested.[1]
In 1895, English economist, Joseph Shield Nicholson wrote that credit expansion and contraction was in fact the expansion and contraction of representative money.[7]
In 1934 economist William Howard Steiner wrote that the term was used "at one time to signify that a certain amount of bullion was stored in the Treasury while the equivalent paper in circulation" represented the bullion.[3]
See also
References
- ↑ a b c Robert A. Mundell, The Birth of Coinage Template:Webarchive, Discussion Paper #:0102-08, Department of Economics, Columbia University, February 2002.
- ↑ Jon Hooks, Economics:fundamentals for financial services providers, p. 201 Template:ISBN, Template:ISBN Retrieved September 9, 2009
- ↑ a b William Howard Steiner, Money and banking, p. 30, H. Holt and company, 1941.
- ↑ Script error: No such module "citation/CS1".
- ↑ Denise Schmandt-Besserat Template:Webarchive, Tokens: their Significance for the Origin of Counting and Writing Template:Webarchive
- ↑ Keynes, J.M. (1930). A Treatise on Money. Volume I, p. 13
- ↑ Joseph Shield Nicholson, A treatise on money and essays on monetary problems], Chapter VI, Effects of Credit or "Representative Money" on prices, pp. 72–74, A. and C. Black, 1895.