Origins and nature of money

L. Randall Wray ()

Chapter 2 in Understanding Modern Money Theory, 2025, pp 14-33 from Edward Elgar Publishing

Abstract: This chapter presents three alternative explanations of money's origins, each of which sheds light on money's nature. The first argues that money originated with the rise of private ownership that made loans from individuals possible, while individual responsibility for one's own welfare induced creditors to charge interest. The second locates money's origins in the temples of Babylonia, created for internal record-keeping, probably as a way to keep track of the daily allotment of grain to the temple's workers. The third argues that the money of account was derived from the ancient tribal practice of Wergild, a system of fines imposed for transgressions to prevent blood feuds. While originally paid in-kind, with the rise of authorities, a money of account was created for measuring fines. These three alternatives conclude that money pre-existed markets and was created to measure debt.

Keywords: Origins of money; Nature of money; Wergild; Money of account; Money in Babylonia; State money (search for similar items in EconPapers)
Date: 2025
ISBN: 9781800375147
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