why did man create coin money?

was it that they wanted a reusable tradable item?
But since they have never created a universal coin, nor have they fixed it so it never devalues why have currency?

The only thing you can buy that wont devalue is diamonds but they are too expensive for lower class to buy as a stock.

Why not create a non changing value money or stock. that once you buy it stays at the $you bought it at. what effect would this have on the market?

why not create something that is practical? why not create coins?

Why dont u thin diamonds can devalue???

“The market sets the price”
If demand is low then the price will drop…making diamonds worthless

theres some food to feed the fishes

inflation thats the problem with money.

Humanity needs a good that does not loose its value because of some coincidental thing. Something to make life more stable.

i forgot the reason for the choice of coins and money… my old econ teacher told me it …
Its a unit of value
A unit of measure
and something else…

Its collectively agreed upon which is all that matters. We all agree that a dollar is worth a dollar. In the marketplace at least, if you dont agree with this then u are obviously a reetaaad.

Yes the value of a dollar is a dollar. But the value of what a dollar can buy changes daily. Yesterday i could buy 50 pieces of gum and 1 soda, today i can by only 25 pieces of gum and a smaller soda. Thus the value of 1 dollar is not worth the value you obtained the dollar at. This is called Inflation.

I would like a Commodity that is not affected by inflaton.
Coins are affected by Inflation.
Since there is no such thing as a commodity not influenced or affected by inflation. Then the nearest thing to this idea is diamonds since their value is so high that the increase and decrease of diamonds is a marginal growth, marginal loss. I could buy one diamond and sell it the next day and get the same amount. But if I buy 30 pieces of gum and sell them to somebody else I have to mark up the gum so I can get what I paid for back out of the gum.

Do you understand me yet or are you gonna continue being an idiot and quote economical reasons why the first coin was made?
I’m asking why have they not made a non-changing value commodity. A commodity that is not influenced or affected by economic changes nor time. A commodity that does not decrease or increase at all, it keeps the same value as the day it was bought. A Coin does not do this, in fact in long lengths of time some coins become worthless due to economical, or other reasons. Only worth those coins have are to coin collector’s and that is only if it is rare.

blu, relax. There’s no need for personal insults here

bah and moo

Inflation is inevitabel, you can’t have an economy without it.

Diamonds are affected by inflation, but only very slightly since demand supply is very much stable, and they are so expensive and in short supply.

Capitalism, live with it. :imp:

the market wouldnt grow if stocks stayed the same. coins were invented in turkey a few thousand years back, the area was rich in metal…and they decided it was more stable ans fair to have currency rather than swapping two goats for 6 chickens or whatever. the Euro reached parity with the dollar yesterday…does this mean we should have faith in the Euro or is it simply the falling dollar which is causing the Euro to rise? can an economist afficionado explain to me please?

Im not saying all comodities should be so stable, just saying it would make it better for people to live if they could invest in a commodity that didnt loose them nor make them money despite what ever problems may happen in the economy or in time.

But dollar is fading.
sorry hit enter to quick.

i forgot the reason for the choice of coins and money… my old econ teacher told me it …
Its a unit of value
A unit of measure
and something else…

Ha I thought that was funny. Not making fun but uhh o well… sorry…

Anyway I thought money was originaly backed by gold? Might just be the U.S though. They were going to use silver so they could put more money into circulation but they ended on gold or something. But uhh … It’s easier than bartering I’m guessing. Although I really hate money. And I hate selling things knowing it can be cheaper. I feel I’m ripping people off but I’m beginning to rant now… I think I’m done now.

A lot of posts above express the opinion that inflation is a ‘bad thing,’ and that we should get rid of it. Theoretically, this would be possible if the state was to assume control of all economic decisions. However, as the enduringly influential economist John Maynard Keynes argued, inflation is a mainstay of free market capitalist economics. He talked of it in terms of the Phillips Curve, which suggests that inflation correlates negatively to unemployment. Hence high inflation actually benefits the economy in the shape of lower unemployment. The reasons are pretty complex but are based on the ‘money illusion’ effect by which workers are drawn into jobs because of the attraction of higher nominal wages (which is inflation), even though the purchasing power of their higher wages has actually decreased (because prices are higher) resulting in no net change, other than higher employment.

That view is often criticised by so called classical economists, because they do not believe that people are stupid enough to fall for ‘money illusion,’ but economics is full of ridiculous assumptions. Anyway, just another way of looking at it. Inflation leads to employment, so in that respect is a good thing. Also, it erodes the value of any money you have borrowed, so if you’re in debt, you better pray for inflation baby! So it’s not all bad.

Gold standard…one of Adam Smith’s theories, which we in Britain used up until the 70s (I think) although the yanks might have abandonned it after the Wall Street Crash.

Supposed to back up all paper/currency with the relevant weight in gold, in the national reserve. This is so that people don’t have to trust that their cash will be worth something- i.e. theoretically I think you could go to the bank and demand gold to the price of your banknote, which is why they have “i promise to pay the bearer the sum of…” on 'em. Eventually it was scrapped becuase it was unnecessary- unless there is a massive economic crisis like in Argentina or Germany in the 20s, people always have trust in the banknotes they use, so the gold is not necessary.

I thionk all thats wrong, just what I remember from Economics 101 with my history teacher :confused:

inflation is needed to keep the economy going its the most logical soloution and 99% of the time it works every now and then for example when germany could not pay reparations in the twenties inflation was a problem but it keeps the economy stable. Coins are needed because it is a recognised form of currency and that trading in possesions is not an effective economy which is the reason coins are needed. (my comments are blantent but i just dont have very complicated views on the matter.)

No paper money is used for those reasons.

Its a unit of value
A unit of measure (1 dollar)
and is collectively agreed upon.

and yes it could be backed by gold but that doesnt disprove any of these reasons as well. I think we are both right.

Mr. “i took Econ 101” 50 years ago

(not sp ckd, not grmr ckd)

Sorry but as a unthreatend/threatend american I have no faith in the banking system due to Stock failures of recent. The american economy like others is so farking thin of a line of real and unreal that i dont trust it any more. Maybe ive watched to much media on the subject but after being educated I have no trust in a web of lies, red tape and hope that most goverments are based on.

So this is why id prefer a basic unchanging unit that is common with every goverment such as gold, but since gold is so cheap it is not usable for this purpose.


50 years ago?

I’m only 18!! :smiley:

you need both thinker dont be niave. If you only had notes then the range of money a small price good could cost would be tiny. You would have to pay a dollar for anything that is worth a dollar or under. Coins give you a larger range of prices for example you can buy a drink for 45p to do this you need coins (in the economy) as well as notes. coins are robust and it would be to much hassle giving out change in 20 pence notes so coins are essential for that reason to.

the use of coins replaced the system of barter a thousand years back. It help strengthen the well being of a civilized society, paving the way for economic concepts, such as supply and demand, inflation, deflation and GDPs.