Currencies
Money is a payment instrument specialist generally accepted by members of a community in settlement of a purchase , benefit or debt. It can perform three main functions:
- function as an intermediary in the trade ;
- function reserve value ;
- the expressive function of unit of account in calculating the economic or accounting ;
Some authors consider that the ability to extinguish debts and obligations, including tax, is a fourth function called " legal tender "currency. In practice, these functions can be performed by different currencies in circulation simultaneously The functions of money Aristotle defines the currency by three functions: unit of account , store of value and medium of exchange. Since the removal of references to valuable materials and the dematerialization of money media, and after the intervention of economists "nominalist" , the legal aspects of the use of money (including legal rights that are attached in legal and discharging) are more apparent. These fees are set by the state and make the currency a constitutional institution in many countries. In the absence of currency exchanges can be realized in the form of barter a good cons another. For two agents A and B exchange goods X and Y, it must prefer the one with X and Y as one who has preferred to X. Y This is called the condition of "double coincidence of wants". This condition severely limits the number of situations where barter is possible for an individual in everyday life. The currency used to overcome these conditions, although it may constitute a share against all others. An agent accepts money in exchange for property he sells because he knows that other agents will accept in exchange for a property they want. The currency has always valued by everyone at the possibility of exchange against any other property. An exchange transaction of a property against another is thus separated into two separate operations in time: first exchange of property owned cons of currency and then exchange the currency against the desired good. The function of means of payment , sometimes presented as a fourth function of money is only one aspect of its function as an intermediary in trade. Facilitating trade, money is an essential tool of free trade. The currency also facilitates the payment of wages of free workers who otherwise may not be that au pair or more generally by compensation. These latter methods are cumbersome, arbitrary and potentially subject to litigation. Currency facilitates wage employment, the division of labor and the establishment of contracts. It gives a convenient expression to private obligations arising from all kinds of contract, or public ( fines , fees , taxes ) when the public gives it a legal tender. It is an institution essential to the economies of modern societies based on freedom of employment, production, consumption and savings. For a store of value means the capacity of a financial instrument or transfer of real purchasing power over time. Thus, a property is a store of value because it can be bought today and sold in the future by providing purchasing power to its holder. This is called a real asset as opposed to the concept of financial assets or securities, including equities and bonds are a part. The ability of the currency is virtually guaranteed in the short term: it rarely is strongly amputated of its value overnight, even if this has already happened. In the longer term purchasing power of the monetary unit is reduced by inflation. To avoid this, investors seeking to invest their savings rather than maintain the form of currency, except in cases of panic. The hoarding of money is the most liquid investment. Collective propensity to retain more or less "liquid" conditions all their savings in financial markets and is closely followed by the monetary authorities. When economic agents are increasing their cash holdings is that they divert investment and most common consequence is a restriction of credit. Financial panics occur by rushes liquidity severely destabilizing activity of banks and businesses. Humanity has shown the economic value of property or income in abstract form since ancient times. Beef and wheat were common benchmarks. These markers were used in almost all ancient societies to secure the staging of compensation, such as paying fines, distribute productions, assess reports of barter, and fix the remuneration in kind. The small number of products available and tradition fixed the value relation between commodities in an almost constant. So there was in the past many units of account were not circulating currencies. This was particularly the case of Egypt of the Pharaohs , the Aztec civilization , primitive forms of Greek and Roman societies (the ox's head) or forms the feudal Middle Ages after the collapse of the Roman Empire . Hierarchical social organization and the primitive nature of productions allowed modes of production, distribution and exchange based on coercion and limited the free exchange barter. A circulating currency (there are usually several currencies circulating at the same time: local currencies of various metals, foreign currencies accepted, ...) naturally becomes the unit of account used to express prices. In a context where the assets are numerous and where relative prices can change frequently on free markets, the monetary expression of the prize is the most practical. Agents adjust their consumption and fix the prices of their own productions in monetary units, arbitrate their consumption based on prices recorded on the markets. It is the existence of other currencies circulating for the difference between the function unit of account (provided by the single currency, the livre tournois , for example) and other functions of money (provided by all the currencies in circulation For example shield, ducat , florin , duplicate , etc.). Money is thus a universal means of expression of the value flows and stocks. There is talk of economic calculation if that assessment is made a priori and accounting when it is done retrospectively. Sometimes people continue to express prices in currencies that have ceased long ago (the penny , the French franc since the introduction of the euro and the old franc before him, Guinea in luxury shops British , etc.).. These anecdotal examples show the strong psychological hold currency of account and the persistence of prices expressed in old currency, lack of knowledge of prices in preventing new "to realize" the importance of a prize or announced an income, lack of familiar scales. A change of the nominal unit of currency is always a trauma for the population as we saw during the changeover to the euro. The coin, which is called the coin , is a derivative of the currency. The pieces have no intrinsic value even if they have a cost. Variants of alloy and composition of these pieces have a practical purpose. The parts are usually produced by the public purse but do not correspond to an issue of money: they are released after exchange against an equivalent amount of tickets. Mankind has always shown the greatest pragmatism in its choice of coins that circulate very quickly and have very little time in the pocket of users. The risk that they lose their value during the period they are held is almost zero except very few exceptions, and the sums involved are not such that the loss of value demonetization is really serious. Many of the objects presented as primitive money are actually small change whose intrinsic value is not very important provided that the object has some resistance and is not easy to duplicate. Shells (cowrie shells) in China have played a role, for example multi-millennial small change (until the end of the nineteenth century ) even though the monetary standards and changed the standard of the primary currency. These cowries are found everywhere and very long served small change in Africa. No retail without small change! What makes users little fussy on alternatives if the official coin is missing. Tolls on highways or in shops in Italy, were used in the 1960's sweet to render the currency. The devaluation of the Read had made it more advantageous to melt the official documents of 10 lire than leaving them in circulation, which has generated an astonishing proliferation of low quality sweets. There is every demonetization of a piece of coin that substantial traffic is not presented for conversion, which has been checked everywhere including in Euroland during the changeover to the Euro. The ticket is born as an alternative and convenient but temporary refundable coin. After a troubled history, it will eventually replace them altogether. It passes the banknote in paper money. The first ticket has been used in the eleventh century in China , , at a time when a shortage of metal blocking the Currency. The Jiao ZI were wooden planks bearing the inscription in black ink and vermilion issued in payment of money into alternative metal merchants for their own use. These boards did not circulate in the markets. But even limited, this movement was not without abuses that enabled the Song Dynasty, short of cash, take the initiative in 1024 to monopolize the issue and to make the legal tender: the paper money could therefore be used to pay his taxes. The operation was a success. The paper money will be used for several centuries and will benefit from technological advances such as paper mill, introduced in 1168, to print on paper made from mulberry bark pulp. The paper disappears from the fourteenth century following excess emissions, atrocities Mongols, the Great Plague and the abundance of money provided by Venice. It reappears in Amsterdam in 1609 to deal with a situation so boring for a booming trade in this square. Over 400 different pieces of metal coins, more or less trimmed, more or less tampered with, hardly moving light controls imposed on each exchange. The Bank of Amsterdam had the idea to get all currencies (at a discounted price) for redesign and transform them into a coin of some Aloi. Instead of making this new money directly to applicants, it issues certificates of deposit representing the currency convertible on demand. The metal collected is used to finance the takeover by William of Orange. The combination of innovative banking and political calculations will be found throughout history. The Florin Banco do not circulate in small businesses. In 1619, the Bank of Hamburg, founded by Venetian banker, Warburg, received its charter and works on how the Bank of Amsterdam. In 1661, the Bank of Sweden was formed on a comparable basis and creates the first truly western bank note. The Bank of England starts in 1694, expands on the symbolic site of the Temple of Mithras and obtained the privilege of issue in exchange for funding massive financial needs of William III. Then comes the turn of Scotland , which is eccentric relative to the bed of trade, lack of regular cash. The Bank of Scotland , founded in 1695, is totally independent and issue its notes for supervisory she gives herself. At the end of the seventeenth century , the tickets are a great innovation success (although many believe they date from the nineteenth century ). The technique is ready to spread around the world. The Scots will be the developers. It is indeed a Scot who heads the Bank of England, one that creates the first bank in Canada (which will retain its right of issue until 1934). And it is the Scot John Law that the Regency, struggling with budget problems left by the Grand Sicle, calls for setting up a similar system: the metal coins will be made to the bank and put immediately available to the Regency. In return, tickets will be put into circulation, redeemable for a given quantity of precious metal money. The transaction is positive from 1716 to 1719. It revives a business depressed. As the Italian bankers of Florence, Law took the opportunity to take lease revenue collection and award the monopoly of foreign trade transactions with the company ever in India. The combination of two innovations, the issuing bank notes and large stock companies, would cause the appearance of a frenetic speculation. Regency reimburse shareholders in 1719, imposed new emissions and force Law to be introduced, despite its strongest protest, an amendment of the statutes of the bank: the ticket is not refundable in a specified amount of precious metal ("currency the same weight and just as the currency of that day "is the exact phrase) but" cash money " . Power of semantics, the difference is quickly perceived and the financial bubble burst. The bank is inundated with requests for reimbursement to the general bankruptcy. Law is exiled to Venice. The idea of a bank issuing the Notes is discredited in France for a time. But not elsewhere. The Bank of England survives the crash of the South Sea Company , after a stock market frenzy similar to that Law, and lost over time becomes the model of the issuing bank. In the American colonies of the British crown, the need for money is chronic. It is as the traditional currency of the " redskins "as Wampum circulates and that some states are implementing agricultural currencies such as tobacco . The first issue of paper money is held in Massachusetts in 1690. It is followed by another in Pennsylvania in 1723 supplemented by a second in 1729 with good results on the activity. Other experiments were held everywhere, money is issued through public spending. The exception of Maryland is remarkable: all registered taxpayers received 30 shillings in notes! It should be noted that all these emissions tickets were redeemed for cash after a while. The quarrel between colonizer and colonized, illustrated by the campaigns of Benjamin Constant, who in 1729 published his modest inquiry into the nature and the need for paper money, bears heavily on the willingness of England to impose its currency when this happens, a recession will result in settlements that will accelerate the movement towards independence. The American Revolution is financed through the issuance of notes called "Congress." Inflation will be immediate, and after 42 programs running at the hyperinflation , the currency will disappear but not without leaving the saying: "It is not worth a ticket of Congress." The French Revolution for the same reasons is financed by printing money, the assignats , which is the warranty on the value of national assets confiscated clergy and nobility. Land ensures the currency. As in the system of Law, the beginnings are excellent with a recovery in activity and the creation of remarkable fortune like that of Perregaux , future creators of the Bank of France. But the abuse issue eventually lose all value assignats which will remain infamous. Bonaparte and Napoleon entirely recast the French monetary system by creating a new currency, the Franc Germinal and an issuing bank, the Banque de France on 18 January 1800 , it received various privileges in 1803. The note, convertible into gold, is now installed for long time in France, especially since in spite of the permanent state of war under the Empire, the ticket remains consistently and effectively convertible (which is not the case with his main opponent, England). The two centuries that will follow the spread of tickets with two developments: Private banks no longer have the power to issue tickets, but in return, they have preserved and extended it to issue credit money. Small cuts are tickets that are related to the metal coin with which it competes. The smallest ticket is in cash and traders in the pockets of consumers. They are not often given to banks and return only slowly to the bank. This is the reason for their greater wear and dirt. A controversy has been launched in France for the introduction of one euro ticket, cheaper to produce than the room. The inability to ensure the cleanliness and integrity explains the reluctance of the ECB to move in that direction. It took a long maturation that economic agents are entrusting their money to banks as deposit. Currently it has become the main reservoir of money. The main reason is the security offered by banks for the conservation of liquid savings, less random than the wool socks, and the payment facilities offered by the banking system. As the check was paid and was not accepted by the State for payment of taxes, development was slow. The possibility of paying taxes by check date of Napoleon III, who sets the laws of 1865 the rules of its use. In France, the possession of only checking account was widespread until the 1960s. The use of the check is now highly regulated. Although not legal tender (it may be rejected by the traders) the law imposed in use for many payments, even if only to ensure the traceability of the movements of large funds. It is currently prohibited from carrying more than 10 000 euros in cash as part of a regulation valid for Europe , which involves payments via a bank account for all major transactions. Widespread bank branches deposits "every corner" that has profoundly changed the face of our cities and that the checking account have these laws in favor of bank payments. The credit card that ensures a guaranteed payment to a certain sum by the transmitter without having to worry about the provision of bank account of the buyer, despite its cost to the seller, has now widespread and overrides the check for most purchases an inexpensive shops and almost everything on the Internet. Electronic devices such as transfer of the Swift system can circulate currencies worldwide at high speed. Gave immediacy and ubiquity of use unparalleled interest in bank deposit for investment transactions or purchases related to globalization. Banks do not offer their services without monetary compensation. Not only certain means of payment are usually paid (bank transfer, credit cards) deposits banks provide the bulk of resources allocated to loans. In turn, the credit can create money to the extent that the writing credited to the borrower's account is accepted as a basis for payment by traders and other bankers. This acceptance was initially limited to networks of traders interested in the use of bank money for practical reasons, then was generalized by various devices prudential or private (risk selection, the magnitude of liquidity reserves) is general organization, as the introduction of central bank lending of last resort, banking regulations and the implementation of monetary policy. The disadvantage of systemic Linking deposit and credit risk of an influx of applications for conversion of notes, called a liquidity crisis, as opposed to solvency crisis, describing the collapse of credit from a bank causing its bankruptcy "its done" and not because of panic. This risk has led States to grant state guarantees for bank deposits to prevent stampedes devastating. These guarantees have recently been expanded and better coordinated between the European states to avoid a destabilizing competition based on this single issue. The other drawback of the money created by the credit is that it is fleeting: money disappears when the loan is repaid. While the issue of banknotes by central banks is continuing today. The disappearance of credit money follows therefore that of credit. A " credit crunch ", a sudden deflation of the money that entrepreneurs asphyxia occurs when credit restrictions become too great. Panic World in September 2008 triggered the crisis known as subprime , risky U.S. mortgages, and marked by the collapse of U.S. bank Lehman Brothers , Universal and destabilization of financial institutions, raising fears of an event like this. Electronic money is a currency stored on mobile electronic devices also allow payments. The money stored in these devices is no longer in bank deposits. It is indeed a sui generis form of three separate previous. Currently the only e-money in France is one that can be loaded onto the devices Moneo. Like all currencies adoption of electronic money raises the question of the reality of the rights transferred upon payment. She is currently guaranteed by the bank consortium that supports Moneo. That means the merchant who found the payments in electronic money can repay its deposit account without any doubt from Moneo and affiliated banks, who believe themselves having ascertained that no one can create counterfeit money on their card. Similarly, the confidence of the owner of the electronic purse is crucial. He wants to be sure that the money paid there will not be challenged. The very low amounts that can be stored (100 euros maximum) and the very low value of unit operations (less than thirty euro for an operation without checking) and the relative novelty of the device explain why the electronic money nique is still marginal. But it is a currency whose use has real potential for dissemination. Distinguish many of its electronic money storage medium. Whether it is a smart card, a mobile phone or a key USB , these tools are not the currency. Do not confuse either electronic money that can be stored on different media and devices Mono prepayment or credit cards in their non-use Moneo (you can now use their credit card as an electronic wallet). A credit card can transfer via a payment terminal, a sum of a checking account to another. It does not store any currency and is not in itself change. Also features pre-payment do not acquire because they are an electronic monetary nature. A metro card bus or a prepaid card for parking are not the currency. No more than a year subscription to a journal or a subscription to a golf club or a magnetic card to go to the Louvre when you want. Delivery will be made gradually. It was paid in advance. The real money is in the supplier's account. For the purposes of monetary analysis has been developed a concept of "virtual money" consists of investment banking almost immediately available but which require passage through a bank account to be used. The validation can be done almost in real time, it is not unreasonable to assume that these accounts are liquid and almost akin to money. The various monetary aggregates have been defined on a statistical basis internationally. M1 is currency in circulation (notes and coins in circulation) held by non-financial sector, plus deposits "on demand" (in banks and savings banks). At the end of June 2008, euro area M1 = 3838 billion M2 = M1 + time deposits less than 2 years and deposits with notice of less than 3 months (such as savings books, CODEVI housing savings account, savings accounts popular youth books, etc.). In late June 2008 in the eurozone, M2 = 7667 billion. M3 = M2 + titles pension debt securities issued within 2 years (such as debentures and medium term notes, as well as mutual fund shares and money market instruments (money market funds, certificates of deposits, bonds of financial institutions and corporations). At the end of June 2008 in the euro zone M3 = 9022 billion. M0, which is hardly ever used (it is referred to as "base money") is not a measure of money: it is the currency issued by the central bank (tickets + net bank lending to the central bank side). In 2005 in Europe, M0 = 514 billion . Anything that affects the money supply can have a direct effect on the solid and "real" activity. The interpretation of these aggregates has become complex because of structural changes that have occurred recently and the introduction into products normally under M3 new complex financial instruments like CDOs (debt obligations). M1/PIB ratio rose from 0.40 in 1950 to 0.25 in 1982. Since it oscillates around 0.25 . This decline reflects improved cash management by companies and individuals who place more and more their account balance payable. However, if one takes the absolute value of M1 and that subtracts inflation is widely observed that during recessions M1 contracts and expands during the expansion phases, corresponding to greater risk taking and increasing debt by economic agents. On 23 March 2006 , the Fed stopped publishing M3, whereas this indicator was not used. " The ECB continues to do so even if Christian Noyer, the current governor of the Bank of France said that the introduction of new products by changing the interpretation . A retrospective review of M3 shows the swelling of the housing bubble and the beginning of his overthrow in late 2007 that would precipitate the block then the financial markets tumbled and banks Eurodollar , Eurocurrency A special case of these quasi-currency is the Euro-currency, including Eurodollars. The principle is the same, a cash deposit in a bank in the country of origin serves as a guarantee to an issue of title that circulates outside the country. This eliminates the need for regulation of the country of origin. The multiplier effect of the credit applies, which allows the circulation of a considerable amount of money derived, can be used for all ordinary purposes of money, including fundraising by issues of bonds In the current monetary system, money is essentially scriptural (90%): it is created by banks by a set of records, upon request, and within certain limits, in exchange for a promise of repayment (debt). There is money creation of the granting of credit and monetary destruction on repayment of the credit. The total money supply corresponds roughly to the in-credit courses. The game consists of entries in the register by the banker in his books the amount of credit from one side to the active (possession of a debt) and other liabilities (supply an account). The limits to money creation are managed by the amount of reserves that the bank must have on deposit in its books to each grant of new credit. This amount is generally between 2% and 10%. The power of the banking system as a whole to create money appears to simplify nice if one considers the entire banking system as a single bank. Any loan to an agent is spent and the money leaves the account of the applicant concerned, but the currency back to the bank, in the accounts of suppliers or service providers, which again has the necessary liquidity to other loans. Banks, collectively, have therefore a remarkable opportunity: the expansion of their assets (loans granted by issuance of non-financial agents - ANF), leads instantly that of their liabilities to equity (the deposits). But the expansion of liability is limited because there are opportunities organized or spontaneous drain on their own monetary system. These "leaks" are: Example: Suppose the demand for currency is recorded at 20% of deposits, the reserves were 8% and the banks have excess reserves with the central bank for 100. If there is demand for credit ANF, they can grant a new 100 credit, and ensuring the total leakage of 28, they remain 72 of excess reserves. These reserves will, in turn, allow 72 new credits, and the total leakage will be 20.2, the remaining reserves will become 51.9. So to get that excess reserves are 0, since the total leakage is 100. In this example, in total, from 100 base money, banks will have created 357, 71.4 will meet in currency in circulation, 28.6 in minimum reserves with the central bank and the return of deposits in the banking system will be 285.6. So there is money creation by the banking system from the amount of base money at their disposal (monetary base). This creation is not without limit. The potential creation of money is reduced to As credits issued: the proliferation of credit as we saw at last stop. The formula for the credit multiplier of the banking system is: k = 1 / b + h (1-b) b-leakage factor in the form of tickets, and h the coefficient of drain reserves. Knowing that in the euro area and 15% b = h = 2%, the banking system can not multiply the credit for no more than 5.48 times. Commercial banks are also required to tell prudential rules (Basel 2 - Mac Donought ratio) so that the credits they do not exceed various ratios with respect to capital and deposits of their customers. The extension of the securitization and off balance sheet has enabled them widely over the past decade to escape these constraints. To limit credit expansion and thus the money supply, the central bank may act to reduce the overall liquidity (operation of open market ) or increase the refinancing rate in monetary base (the lever was the preferred means of control of most central banks in recent years). In some forms of organization of banking supervision, the authorities can also act directly on the amount of credit offered by banks. It was for example the case in France under the Debr laws in the sixties. Loans must be repaid. When they are destroyed Monetary follows exactly the same rules as the creation in the opposite direction. The monetary credit activity plays in both directions. If the bankers generally slow and then reduce their credits there will decrease the money supply. The overall bank money creation will depend on both: This complexity where trust and psychological factors play an important role, says the instability associated with the creation of bank money and its role in the movements of the economy and the business cycle. When a bank lends the savings pre-existing or creates new bank money after a credit, it credits the account for his client who will spend this money, that is to say the transfer to accounts of its suppliers and employees, only a fraction of the beneficiaries' accounts being held by the bank. Conversely, the bank may receive deposits in the accounts of its customers, the amounts for purchases made by customers of other banks. Banks face the leakage corresponding to the needs of central bank money: reserves (2% in the euro area) and demand for money (estimated to average 15% of deposits, but vary depending on the time and place ). If each bank grants credits based on its market share of deposits, leakages are compensated and the banking market is balanced. But if this is not the case, to adjust their cash in central bank money, banks will turn to the money market ( Euribor , for example) that will allow them to place, with other banks and financial institutions, their excess or get them the funding needs for base money, after netting daily movements between banks. Interventions by the central bank in this market are the "refinancing". The operations of the central bank discount rates and open market operations, in conjunction with the repurchase rules of certain monetary assets are supposed to regulate this market. Due to an abundance of excess liquidity of financial institutions, market rates may fall below the rate the central bank refinancing. In case of tension in the money market, a provision of liquidity (refinancing) by the central bank is likely to regulate the situation. When (as was the case in 2008) no bank no longer trust others, it happens blocking international loans or bank lending rates too high. This blocks the money market and imposes massive refinancing by central banks to allow commercial banks to meet their needs for central bank money. If we talk about money when an object has been set aside for later use or exchange has been used regularly as a trade matching or symbol count has a good record, the first coins date back to roots of humanity. The list of matters which could be used for either of these functions is also nearly infinite. In truth, we can save, barter, as in any matter. For very small purchases, where the exchange loss is not of great importance, has been used historically as a means of exchanging objects convenient to carry and no real intrinsic value but are not really coins. Among the means of exchange rather than regular mankind has invented include: Currencies based on objects persisted until the end of the nineteenth century (the salt in Tibet, cowries in China, India and Africa ...) and reappeared sporadically when there is a shortage of money, particularly during long periods of disorder and poverty (the package of cigarettes in Germany just after the war). These phenomena are not just anecdotal: they demonstrate the need for a medium of exchange. The units of account existed for over 2000 years. They are often derived from units of weight. A unit of account, the Mine , for example are in the empire of Akkad (2300-2200 BC). The Egypt of the ancient Pharaohs has a series of units of account: the Shah , the Deben multiple thereof, or Quite a tenth of the Deben used daily by the scribes. The Aztecs (later but at a comparable level of development) had a number system and also a standard unit of account equal to 100 quachtli the cocoa pods or a piece of cotton (the ixtle). But the form of highly stratified societies, the lack of freedom of producers, the small number of products, the lack of division of labor, the overwhelming role of authorities in the collection and distribution of products, explained that these units has not not circulate. In Egypt, only the barter was legally authorized. Among the Aztecs, one begins to see a movement of the cocoa pod until the arrival of Europeans , . Because they are wanted by all peoples, the value of metals is intrinsic (" commodity money "), durable , homogeneous , easily divisible and relatively rare . The use of gold and silver is attested since the earliest times (4000 years BC). The symbolic power of these precious metals and rare was very strong and touched on religion and power in the Mediterranean basin: The progressive abandonment of human sacrifice (the seventh century BC. ) to conciliate the gods gave way to animal sacrifices and donations in valuables, including gold. The representation of Gods precious metal will continue long into the temples, for example the statue chryselephantine of Athena in the Parthenon. "The money was used as tribute and was not put into circulation" . The Egyptian saying, "Gold is the blood of the gods" , was and remained valid well beyond the ancient Egypt . The shrines were the scene of intense activity of donations and contributions. The Ekati is one tenth of religious same type as the tithe. "The Greek sanctuaries were undoubtedly economic agents. The Gods were manipulators of money " . Religious practices around the money will continue after the creation of money as evidenced by the tradition of putting a penny in the mouth of the deceased who will cross the ages ancient Greeks (and were given a symbolic piece Charon , keeper of the Styx , the river blocking the entrance to the empire of the dead). Until a Lydian king desecrating and partially gold to circulate as parts more readily accepted as a last resort they allowed to get away from his regular duties vis--vis the gods and the temple. Trade in prostitutes (near the temples) and all local retail establishments were soon fed by these coins which were practical and that was almost certain to exchange against any property available for sale . The history of monetary innovations of the last three kings of the dynasty Mermnadai , Alyattes (610-560 BC.) and Croesus (560-546 BC.), in western Asia Minor told by Herodotus has since been confirmed by archaeological and numismatic studies . Gold River Pactolus , the manufacture of parts and their movement in the cities, islands (especially Aegina with gold Sifnos ) and even distant Greek colonies (parts have been used to Marseille from the foundation City) will open a new page in the history of mankind. "Money may not have been created to facilitate transactions but once created it was adopted by the trade." "The currency has accompanied the emergence of retail ' . According to some, the invention of money would have been as important as that of the wheel , the compass or the printing , as Stater and Tetradrachm with a ratio 1 / 12 with the equivalent in cash. It was not until 267-265 BC for a second gold coinage is organized. However the silver mines of Laurion in Attica permanently employ between 20 and 30 000 people, mostly slaves, which gives an idea of the importance of money in the Hellenic world . Alexander the Great, after Philip II of Macedon, enriched by the conquest of Mines Mont Pangea, taking advantage of the monetary revolution that allows to pay mercenaries to finance large armies that conquer all of Asia Minor to India and Egypt. Throughout his journey he identifies mines gold and silver rises everywhere mints money. Money is the sinews of war "since its inception. "This is not Philip, but Philip Gold, who took the towns of Greece" ... and elsewhere. Metallic money won on the Greek model throughout the ancient world, despite some resistance like that of Sparta who showed his contempt for money and an opponent who used it (the city will come to money only from the III centuryBC. ) or the Phoenicians, a people, however, traders who also wait some time before entering the system. It will be a central element of economic and political life of Empires: Rome and China. Rome imitated in Greece as in other currency. The first coins were silver and bronze. Augustus used the gold with the aureus. The difficulty that Rome was facing was the lack of new sources and sufficient monetary metal with the exception of the Spanish Mountain Las Medulas which was itself destroyed in a frantic effort to provide the quantities required by the payment of mercenaries (the site, therefore geographical passion for money, is a World Heritage of Humanity by UNESCO). Military expenditures were such that it was necessary to solve many devaluations of the currency as a change of titles of works in precious metals. The silver content of coins literally burst through the centuries. A major reform was undertaken by Diocletian which created a new currency: the gold solidus. He did so shamelessly stealing all the gold of pagan temples he could find. The solidus marked the spirits and the French language since it is the ground or broke. Manipulation of Roman coins have earned them a bad reputation among some authors that respects the canons of monetary orthodoxy, so that some saw this as a source of the fall of the Roman Empire. JK Galbraith ironic about these ideological arguments by noting that after all the Romans managed to dominate the world for centuries with perhaps through a slush money. In China , there are very early use of metal tools as middlemen in trade (knives and hoes) and ingots of metal, particularly silver. You can not pass a real currency with all its attributes only from the reign of Qin Shi Huangdi (221-210 BC. JC), who not only unified China and founded the Great Wall but also imposed the exclusive use of currency round hole square copper which survived until 1837. It was a real money: it was used to pay the troops and was accepted to pay the tax. The company used the markets as the ligature sapeks although non-monetary forms of regulation have persisted until modern times, the familiar form of money at certain times of the eclipses important. There was never enough gold and silver for minting coins in those metals. But the big traders remained loyal to the silver bullion through the centuries, China is a destination for this metal. The use of money experienced a decline in Europe during the Middle Ages with trade restrictions and the introduction of feudal systems almost anywhere with little squares of economic freedoms. The Merovingians are using the old currency and even abandon the strikes on the new model of the old parts of towns and monasteries. The Carolingians were less lax and currency hit and their successors. In 781, Charlemagne replaces old items with new silver coinage. The basic unit remains the penny, but appears a new standard: the pound is worth 240 pence. Sou, whose prestige remained high, has no independent existence but is a multiple of the penny. Were as follows: 1 pound = 20 under 12 denier = 240 pence. This monetary system will remain in force for a thousand years. It will allow a resumption of trade and an initial economic renaissance. In Asia Minor, the gold coin remains in circulation throughout the Empire of the East. The Muslim world, inspired by Parthian coinage ( III century ), sets up a monetary system trimetallic: the gold dinar comes from the Syriac denarius aureus, gold coin for the name and the solidus for weight. The dirham is the coin of antiquity and FELS, the senior follis Byzantine era. The major reform of 696 lived recasting (literally) full of raw coins and the introduction of coins shortly after referring to the emigration and the Koran. Au Moyen ge, toutes les units montaires sont dfinies partout en rfrence leur poids d'or ou d'argent. Sous rserves du contrle de l'aloi, les monnaies peuvent tre changes et substitues partout sur la base de leur poids d'or et d'argent. partir du IX e sicle , le commerce renait avec des foires de plus en plus importantes. Des villes parviennent obtenir des franchises et les marchands des latitudes par rapport aux seigneurs, aux princes et au clerg. La banque nat, d'abord sous la forme de changeur puis rapidement sous celle de banque au sens moderne. Venise, rpublicaine et indpendante, devient la plateforme montaire du monde. Son succs est bas principalement sur l'arbitrage entre les cours respectifs de l'or et de l'argent entre orient et occident. Elle assche l'argent existant en Europe provoquant de nombreuses difficults montaires et par ricochet favorisant les manipulations montaires. Les rois de France usent de tous les artifices pour fausser en leur faveur le rapport entre valeur nominale des monnaies et teneur en mtal. L'histoire montaire devient celle de la production relative de l'or et de l'argent et des consquences de la variation des taux d'change entre ces deux mtaux (ils varieront entre 1 7 et 1 12 pendant toute cette priode). L'arrive de l'or des Conquistadors a de profondes consquences. Mais l'argent reste la monnaie principale en Europe. le bimtallisme est de rgle dans l' Union latine. La dcouverte massive de l'or du Klondike puis de nouvelle technique d'extraction de l'or qui permettent d'obtenir des rendements accrus en Australie et en Afrique du Sud entrainent une hausse spectaculaire de la production : de 1851 1860 on produit la moiti de tout l'or sorti de terre depuis 1500 ans ( 2 000 tonnes contre 4 000 tonnes ). Cet afflux entrainent de graves difficults pour le bimtallisme or et argent partir du milieu du XIX e sicle. L'argent mtal finira par tre dmontis, le passage au monomtallisme d'or en 1873 aux tats-Unis et dans tous les autres pays adeptes du bimtallisme dans les annes suivantes, marquant la fin du processus au prix d'une crispation politique d'une rare intensit dans ce pays. Elle durera jusqu' la guerre de 40, sous la pression des tats amricains producteurs d'argent. L'talon-or exclusif, pratiqu jusque l principalement par le Royaume-Uni , connatra une priode de vie universelle relativement courte : 40 ans. L' argent reste en circulation comme pices mais n'est plus talon de valeur. Il s'agit d'un systme international auto rgul qui marche effectivement comme la thorie le veut : quand un pays est en dficit commercial (croissance trop forte de sa consommation par rapport sa production), il se vide de son or et le crdit se renchrit ; la consommation est pousse vers le bas, la production voit sa rentabilit croitre et l'quilibre peut se rtablir. En sens inverse les conomies recevant de l'or voient leur crdit augmenter ainsi que les affaires et les prix. Mais ces ajustements ne vont pas sans grincements et on leur impute la responsabilit des difficults conomiques srieuses dont ils sont la consquence Le change des monnaies entre elles Le rgime de change des monnaies entre elles dpend du systme montaire international et de la convertibilit des monnaies. Une monnaie est dite inconvertible quand il est impossible de s'en procurer sur un march libre. L'autorit montaire se voit remettre les devises trangres qu'elle convertit en monnaie locale selon sa rgle propre. Elle dlivre des devises ceux qui veulent acheter l'tranger ou s'y dplacer en fonction des disponibilits aprs que l'tat s'est couvert de ses besoins. Un trs grand nombre de monnaies sont aujourd'hui inconvertibles. Ce systme est un frein majeur au commerce international. Lors de crises srieuses une monnaie convertible peut cesser de le devenir temporairement. En France, le contrle des changes a t rtabli temporairement pour la dernire fois par le gouvernement Mauroy, sous la prsidence de Franois Mitterrand , aprs la mise en place du Programme commun de gouvernement et la fuite de capitaux qu'il a provoque. Le systme montaire international dfinit le rgime des changes que les grands pays sont dcids mettre en uvre entre eux. Aprs l'chec successif du aprs la guerre de 1914, puis du premier Gold exchange standard mis en place Athnes en 1922, puis finalement du Gold Exchange standard institu par les accords de Bretton-Woods en 1944 tp: / / fr.org / w / index.php? title =% C3% Les_accords_de_la_Jama AFque & action = edit & RedLINK = 1 "class =" new "title =" The agreements of Jamaica (non-existent page) "> Agreements Jamaica in 1976 defined a system of generalized floating of currencies. Currency exchange rates established in a particular market where states, banks, businesses and individuals can intervene. On the organization and evolution of the market of foreign exchange since 1973, see: Forex and U.S. Dollar. This exchange is an organization that raises many new theoretical and practical difficulties. The dollar is in fact the primary currency. His course was the yoyo since 1971, collapsing in a first step, then returning to record highs in 1997 before falling very low in 2002. These variations ranging from simple to double trade and are detrimental to the cause from the sharp criticism from industry that their currency is strong. They pose serious challenges to the "small coins" that can lose a lot of value and force the local financial authorities to go very high interest rates to avoid a catastrophic fall. Small countries seek to avoid this difficulty by using different solutions as the currency board , the dollarization , currency systems pivots (peg), with mixed results. The recent history of floating exchange rates is marked by a series of financial and economic crises: The creation of the Euro, that is to say, a truly transnational currency managed by a central bank independent of the States, also marks an important step in the evolution of exchange rate regimes. For Europeans this means that their money has more of a symbolic nature national, is no longer supported by their government and allows for free without any financial risk in exchange for the euro currency area called " Euroland ". Sixteen countries are currently in Euroland. The refusal of the European Constitution, which proposed to entrench the European currency and its institutions and attempts to overcome this failure shows the importance of money as a political issue. Thinking about money has always reflected the fluctuations of economic thought from a theoretical approach, neutral, conforming to the requirements of the scientific approach, quantified and seeking to isolate objects precisely and clearly defined, and to define laws verifiable and doctrinal concerns largely related to the interests of economic actors, involving ethical, political and social attitudes and affirming imposition of judgments and policies. Like any science, economic theory seeks to establish links between the grandeur that defines: That theory is the oldest, most discussed, most advanced and most modeled, as the quantity theory of money and prices. "The initial responses were doctrinal views, legal rules, moral precepts and revenue policies" (Alain Barrere, History of Economic Thought). Le normatif l'emporte le plus souvent sur l'analyse. Aristotle first in Politics and in the Nicomachean Ethics offers a functionalist vision of money, but also philosophical and moral. The pursuit of monetary gain for himself, the chrematistic is harmful. In monetary exchange, the important thing is not money. The currency itself is sterile. Cato and Varro , fairly representative of the Roman mentality, putting agriculture over commerce and condemned lending at interest, so the business of money, even if in practice (non-theorized), the monetarii make trade money and practice the loan with interest at the same time that the authorities are manipulating currencies. The medieval canonists raise the question of the common good, especially through the works of St. Thomas Aquinas and his thoughts on the necessity of private property is essential to the emergence of a monetary law individualistic and Research fair price in trade. They fall to the concepts of Aristotle on the sterility of money and prohibit according to the theological dogma interest loan, a ban that goes into the civil law for centuries. The possibility of currency speculation to help, already condemned by interview and Aristotle, generate distrust secular source of many prohibitions. The loan interest will be charged for a long time by the Syriac (Oriental Christian) and later by the Jews. Nicolas Oresme , Bishop of Lisieux, tutor and advisor to Charles V, published in 1366 "Origin of natura, jure and mutationibus montarum" which is the first text of monetary policy for the Prince. It explains the role of money and the amorality of its alterations. It gives a first analysis of operating conditions of a bimetallic system. Mercantilist designs dominate from 1450 to 1750. Contemporary emergence of large modern states, religious reform, a rise of trade and production, the discovery of America and India, a swelling of the movable wealth faster than wealth related to exploitation of the earth, they raise the issue of wealth, therefore, that the Prince of the nation. With the abundance of precious metals from the mines of South America will have many questions as the relationship between the abundance and very high prices that we see throughout Europe, the merits of trade policies that leave the metal to escape abroad and thus the question of the accumulation or movement of species. These realities lead to an intense debate on the role of currencies and the necessary legislation to monetary exchange. Thesis argues that the merchant is powerful because it was cash rich and the power of the prince is also evidence to accumulate money to fund its ambitions. Others point out that this is an illusion, illusion chrysohdonique, and that real wealth lies elsewhere. In the sixteenth century , Copernicus gave the first formulation of the quantity theory of money "currency depreciates when it becomes too abundant, which will be taken over by the School of Salamanca and developed by Jean Bodin , who published in 1568 " Reply to Mr. Malestroit "then the seventeenth century by John Locke and David Hume. Thomas Gresham gives its name to a law that remained famous: the abundance created by artificial monetary policy changes is an illusion because the "bad money drives good ". In fact it was Copernicus who made an explicit a century earlier: "A greater error is to introduce next to a good old money, new money bad, because not only does it depreciates the former, but, so to speak, it hunting. " The beginnings of economic science and the formation of a Monetary orthodox doctrine While the commercialism and including bullions saw the currency is the essence of wealth, the Physiocrats and their successors until the late nineteenth century focus on its function as a medium of exchange and reserve the name "wealth" only to real property. Francois Quesnay , Cantillon , Turgot , Adam Smith , JB Say , Ricardo , John Stuart Mill , ... the great writers of economics at the time, agree to the following positions: The quantity theory of money Bodin extended by Ricardo becomes official and the only one taught. Marx also concurs, saying that money is an illusion that hides the reality of the phenomena of domination. These positions have been interpreted by some commentators of the twentieth century as a lack of interest in monetary matters, which were removed from the mainstream of thinking, when in fact all the above authors are devoting several chapters of their books. These same commentators also lend to the authors of the nineteenth century the idea that money would be "neutral", when in fact they analyze in detail, to denounce the effects of changes in money supply. Only in Walras that money disappears completely from economic reasoning. This doctrine reached its peak between 1873 and 1913 with the generalization of the gold standard throughout the West and the completion of the movement for the establishment of central banks with the creation of the U.S. federal reserve system in 1913. Before the 1914 war and the crisis of 1929 challenge this orthodoxy, several authors dispute the point. For example, according to Malthus, an increase of money circulation is favorable to economic activity and employment. Clement Juglar (1862) highlights a cycle that is explained by the disruption of credit. Demonetization money for the exclusive benefit of gold led to many political protests or theoretical based primarily on the assertion that reducing the quantity of money is bad for business. The abundance of currency is best served with both metals. Milton Friedman , much later, will endorse this view in his book "Money Mischief". The nominalist dispute that money can not be that metal and its value is intrinsic. Marcel Mongin in 1887 says that money is a "voucher", in modern terms a claim on the economy and may be exercised by any ad hoc support well managed. F. Knapp states that the money does not manifest itself only by its Wert (purchasing power), but also by its Geltung (liberating power in respect of debts previously contracted) for him is the state that sets the Geltung and the market Wert. Joseph Schumpeter in 1911 in "Theory of Economic Development" highlights the role of entrepreneurs and noted that credit expansion, so the currency is therefore essential to investment activity and growth. Currency ceases to be neutral and becomes a condition of economic expansion. Knut Wicksell noted for its hand until the late nineteenth century prices remained depressed while interest rates were very low. It demonstrates the contradiction between the law of markets to Say , and the quantity theory of money (made by Irving Fisher ) to which he opposes. It shows new concepts as possible contradictions between the market for consumer goods and the goods production and cumulative effects, an initial disorder can take a cumulative magnitude and worsen at an accelerated pace. Bertrand Nogaro finds that the price of metals depends on whether or not they are monetized. So the value of the currency is not linked to an intrinsic value of the metal. Demonetization money, contemporary writings, gives him ample confirmation. Money is not "an ordinary commodity." At the same time it shows that higher prices if monetary abundance is neither general nor uniform nor unconditional. The First World War and with its huge industrial samples of men and wealth along with the severe disruption of international economic relations it entails, will sign the failure of practices from doctrines prevailing before the war and cause a complete renewal of monetary thought. The hand goes to the supporters of monetary and activism beyond the state interventionism. States after the war fail to restore the gold standard and are facing multiple crises ( hyperinflation in Austria and Germany), the 1921 recession in the United States and in much of the world, along with wars and revolutions continue everywhere. The Athens conference in early 1920 put in place a system of Gold Exchange, which malfunctioned. The attempt to restore the foundations on English currency overvalued causing a recession. We still speak of "consolidation" of the various currencies in 1929 when the crisis occurs and demonstrates the inability of central banks to stave off recession. For some have even been some tendency to worsen. On the ruins of the model prevailing in 1900 installed a new orthodoxy about the major work of John Maynard Keynes 'General Theory of Employment, Interest and Money "published in 1936, too late to be of practical interest to overcome depression, but the rapid spread will guide economic policy after the war. Keynes argued that Say's Law (for simplicity: the offer provides the means of its own demand) is false and can lead to situations of unemployment due to insufficient aggregate demand. The action by the interest rates to revive the economy is inefficient and requires a macroeconomic policy conducted by governments to ensure full employment. These ideas became dominant worldwide lead to a continuous and massive expansion instead of the state in the economy and a corresponding increase in taxes, public spending and public debt. In France, for example, in 2006, public spending is higher than the value added of enterprises in the commercial sector . This general trend in developed economies will generate a conservative backlash. The period of steady growth and moderate inflation called "thirty glorious years" built on the Keynesian ideas off after the world crisis of 1973-1974, the hardest since the war and the period of stagnation and inflation, called stagflation, which follows over a decade. The failure of all the "Keynesian reflation" in the 1970s led to the comeback of monetarist theories based on the work of the Austrian school , heavily influenced by the Austrian hyperinflation that followed the end of the war 1914 and preceding that of Germany. They seek to show that the state's money does not know better than to provoke attacks. Carl Menger recognizes the central role of money and describes his invention as that of a spontaneous order. Different ways of Primitive were gradually supplanted by those who were more durable, more convenient to use and whose value was the most durable because of their rarity, that is to say precious metals. All functions of money are aspects or consequences of its function as a medium of exchange. This attitude is consistent with that of conventional is developed by economists of the Austrian tradition, including Ludwig von Mises who sees the creation of excessive money and credit by the State of Origin unique economic crises. They are supported by the eloquent writings Milton Friedman and economists of the Chicago School. They denounce as deceptive policies of monetary expansion and unsustainable fixed exchange rates. These designs have reinforced the floating exchange rate system that has established de facto since the explosion of Bretton Woods in 1971 and the liberal policies of deregulation and financial cash that were subsequently widely implemented, despite protests theoretical sharp as that of French Maurice Allais who criticizes floating exchange rates and risks of a new global credit crisis: "What happens happens," he writes. The banking and currency crisis that has developed since the summer of 2007 is addressed by monetary means (massive injection of liquidity) and macroeconomic (record deficit recovery plan investment, distribution of purchasing power through tax cuts ) who ignore the theories of Milton Friedman and challenge the theories of Keynes in the foreground. In a context of floating exchange rates, globalization of virtually all trade and development of financial, monetary theory, largely crumbled, does not prejudge their validity. The question is: what rules to apply to the issuance of bank notes? The dispute occurs in England, first in 1810 when the Bank of England suspended the convertibility of its notes of metal, then in the 1840s following a banking crisis that saw the collapse of several banks and then yet, the USA, in the 1870s about "Greenbacks" ( Demand Note and United States Note ). The currency principle " states that tickets are replacing metallic coins 1 to 1. Any ticket issued may be converted without difficulty that will sit confidence and will benefit from the ticket without the risks of insolvency of banks that we see. The banking principle " that considers the issue of banknotes must be adjusted as needed in the economy which, if it is constrained by the small increase in metal resources, will not be optimal. Under this doctrine, the fact that the public always has the right to demand repayment in gold notes is enough to guarantee the value, provided however that the assets of the bank, not only gold but also in any other form ( real effects doctrine ) are sufficient. The law of 1844, the Banking Act, slice the dispute in favor of the Currency Principle, at least in theory because in practice each crisis measures will be adopted exceptions. Demonetization of gold and silver has made this very argument Untimely Meditation, it nevertheless remains as to the issue of deposit insurance and the level of reserves (central bank money) that requires banks. The silver metal is discredited in the United States in 1873, as part of an international movement that will see the end of bimetallism in favor of the gold standard. The issue stirred strong American politics to the point that a "party money" is made which will have a role in every presidential and parliamentary elections from the late nineteenth century supported by the states producing the metal. The quarrel lasted until the thirties when Roosevelt remonetised partly money, causing a scarcity in Asia that will embarrass the Chinese regime of Chiang Kai Check and unwittingly encourage the communist revolution . Milton Friedman retrospectively give reason to supporters of bimetallism by showing that the scarcity of money due to the disappearance of money Money explains a significant part the recession that followed. Monetary issues have always troubled the United States. After the episode of hyperinflation banknotes of Congress are feeling the need for currency issue a little more controlled. A U.S. bank was founded in 1791 by Alexander Hamilton , whose charter is temporary 20 years. It opened eight branches, serves as a depository for state funds, provides transfers throughout the other U.S. and acts as paymaster general government spending. It issues banknotes convertible into gold or silver. These tickets do not lose their value and "knew the general esteem" . The U.S. Constitution defines strictly the money and gives Congress (Senate and House of Representatives combined) responsibility for monetary issues. A big political row when it moves or not to renew the franchise of the bank. Led by Jefferson 's opposition to the renewal wins. A second Bank of the United States born shortly after. That time it was President Andrew Jackson who stifle. The idea of a central bank will disappear for a long time (80 years). Jefferson's opinion was unqualified: "I've always been the enemy of banks rather than those that take deposits but to those you pass on their paper tickets, thereby avoiding the honest cash from circulation. My zeal against these institutions was such that the opening of the Bank of the United States I played like crazy contortions of those jugglers bankers seeking to wrest the public regarding their financial juggling and earnings sterile. " The banks will grow at a rate disheveled, especially in the second half of the nineteenth century. For example, Wells Fargo opened 3500 branches between 1871 and 1900. Westerns reflect this credit frenzy by showing that in any village which is mounted immediately creates a coaching inn, a saloon and a bank .... It is true that the settlers who access a piece of land do not have resources. The bank provides them with land as collateral and results of operations as a source of repayment. It was not until the 1907 crisis which will see many bank failures that the idea of a central bank which function as " lender of last resort 'take shape again . But the prejudices are such that it provides a neutral name ( Federal Reserve System , said familiarly EDF) and is created in several regions (states) a similar institution with broad powers. Only well after the outbreak of the 1929 crisis and the bankruptcy of more than 9,000 banks that the EDF obtained from Roosevelt in 1935 all the powers of a real central bank (1929: 659 bank failures, 1930: 1352 , 1931: 2294, end 1933, nearly half the banks had disappeared since 4004 banks failed that year). But this is not the Fed that we should stop bank failures but the Federal Insurance Company deposits which offered a state guarantee to depositors. In 1934, 62 banks stopped payment. The banking crisis was over. Note: This will be repeated in 2008 when, after the crisis of confidence following the collapse of stock and Lehman Brothers, it is the States who declared not guarantee depositors central banks. The greenfield project to create a historically unified multi-country currency area in Europe has been a source of extremely high political tensions which have given rise to strong divisions within the governing parties in all countries concerned. The separatists have said that money was a fundamental attribute of the nation which could not be transferred and the abandonment of sovereignty meant the abandonment of monetary sovereignty tout court. The extreme-left campaign was to denounce the proposed euro as a concession to "neoliberalism" and deprived the State of any monetary policy curiously reaching assertions of their nemesis, Milton Friedman, who responds in n Geopolitics 53 by spring 96 to the question "Do you believe in the possibility of a single currency in Europe" with these words: "Not in my lifetime anyway. No more than 99 or 97 in 2002! " The current monetary disorders have instead reinforced the desire to join a currency area as large as that of the Euro than to leave protection. Knows the extreme difficulties that Iceland sobering countries like Hungary or the Baltic countries have had to push their high interest rates to the detriment of their economies to avoid the sinking of their currency. Prevent a recurrence of such situations necessarily weigh on the debate for the adoption of the euro in Hungary. The situation is the same in Denmark and Poland. A monetary crisis is specifically preserved when saving currency loses all or part of its value following the loss of deposits or securities of money market investments, either because the nominal value of the currency loses its massively purchasing power. When the currency was metallic, this kind of crisis was possible in cases of mass influx of precious metal for no consideration, following a highly successful military expedition (as in Spain after the conquest of America) or, more rarely, after a mining boom. Conversely it could produce a shortage of the metal due to the symmetric (paying a high price, looting) or following a crisis of confidence-inducing massive precautionary hoarding. Today seizures are more physical and take the form of a massive loss of confidence. There are several types: Depositors rushed to their banks to withdraw their deposits, retrieve their money physically in a safe form (as appropriate coin or legal tender). If the bank functioned as the currency principle (cf. supra), nothing would happen. But if the bank operates on the principle banking (as is the case today), it lent to other money on deposit at her and she is unable to repay on demand: that the bankruptcy assured. Unless intervention of a lifeguard. Dans une situation normale, de par les revenus qu'ils procureront, les prts consentis par la banque (avec les dpts qu'il s'agit de rembourser) ont une valeur suprieure ces dpts. Ils peuvent attirer un acheteur de la banque (qui est sauve en change de son indpendance ) : une autre banque plus grosse, un assureur, voire un tat ( nationalisation ). Ils peuvent aussi servir de garantie un prt (mme type d'intervenants, plus la banque centrale dont les ressources sont sans limite puisqu'elle dispose de la planche billet, les billets mis cette occasion pouvant tre dtruit ds le prt rembours). Si une opration de sauvetage n'a pas lieu (par exemple le portefeuille de prts n'est pas, ou ne semble pas, de valeur suffisante pour attirer un acheteur ou un prteur), la banque fait faillite. Comme selon toute probabilit la banque a elle-mme des dettes chez d'autres banques, celles-ci sont fragilises et peuvent leur tour devenir victimes d'une panique, ventuellement avec un effet boule de neige capable de dvaster entirement le systme bancaire d'un pays en quelques mois. C'est une des composantes du "risque systmique". Une telle ventualit est trop grave pour tre prise la lgre par les tats. La panique est consubstantielle l'application du , c'est dire la confusion entre les notions de banque de dpt et banque de financement (telles que dfinies dans le projet 100% monnaie ), et il s'en produit encore de nos jours (exemple de la banque Northern Rock au Royaume Uni). Mais avec le temps les exigences en terme de rserve ont baiss, ce qui rend la fois plus probables et plus grave les phnomnes de paniques. La rduction des exigence en rserve en fond propres fait systme avec la garantie des dpts (au moins pour un montants connus l'avance) par les tats : cette garantie rduit les risques de panique (si l'ventuelle faillite de la banque n'a pas d'effet sur les avoirs des dposants, il n'est pas ncessaire de courir retirer ses fonds), et inversement elle rend possible une rduction des fonds propres (puisque la panique n'a pas de raison de se produire, il n'est pas ncessaire de prvoir les moyens d'y faire face). L' hyperinflation est une situation o les prix montent trs grande vitesse et la spirale s'achve quand la monnaie ne vaut plus rien. En fin de scnario les billets peuvent atteindre des montants vertigineux se comptant en dizaines ou centaines de milliards. Au XVIII e sicle , les assignats en France au dbut de la Rvolution, et les billets de la Convention aux tats-Unis pendant la rvolution furent des hyperinflations. Au XX e sicle , on connut l'hyperinflation autrichienne suivie de l'hyperinflation allemande au dbut des annes 1920. Au XXI e sicle , on connut l' hyperinflation au Zimbabwe jusqu' mi-2009. L'exemple le plus rcent est l'explosion du systme de caisse d'mission montaire ( currency board ) argentin au dbut des annes 2000. Le systme assurait une parit entre le Peso et le Dollar. Il avait permis de restaurer la convertibilit de la monnaie, la stabilisation des prix, l'investissement tranger et une forte croissance initiale. Mais la forte remonte du dollar allait provoquer la crise des pays mergents et mettre mal les monnaies les plus fragiles. Le Ral brsilien est dvalu fortement fin 1999, alors qu'il s'agit du pays qui a les plus grosses relations conomiques avec l'Argentine. Le pays est engag dans une dflation douloureuse et confront un asschement de liquidit. Certaine provinces argentines produisent des monnaies de substitution (comme l'argentino) en mme temps que les dollars fuient le pays ou surtout n'y entrent plus. Les comptes des argentins sont bloqus dans un corralito puis autoritairement dvalus. Les comptes en dollars sont convertis de force en comptes en pesos avec une forte dcote. Les pargnants perdent une part trs importante de leurs avoirs ainsi que les investisseurs trangers. Les CDO sont des dettes en gnral immobilires du march amricain qui ont t rassembles puis transformes en titres, dcoupes en mini blocs nots par les agences de notation et vendus aux enchres sur le march de gr gr des produits quasi liquides. Elles ont t intgres en masse dans les placements montaires dynamiques par des intermdiaires financiers qui ont ainsi dop un temps le rendement de la trsorerie de particuliers comme d'entreprises. En juillet 2007 ces titres se sont rvls invendables et ont perdu l'essentiel de leur valeur provoquant des pertes directes et massives de trsorerie et bloquant le march interbancaire. La panique bancaire amricaine de 1907 offre galement un exemple de rupture majeure du march interbancaire. Quelle qu'en soit la forme, les crises montaires sont les plus graves car elles provoquent un collapsus gnral et immdiat de pans entiers de l'conomie. En Argentine, la perte de l'pargne montaire entranera une rcession catastrophique avec un recul du PIB de 46.1% en 2002 et une trs forte monte de la pauvret. Au Zimbabwe, il n'ya pratiquement plus d'conomie. Le journal Le Monde du quatre dcembre 2008 indique : L'inflation atteint officiellement 231 millions pour cent. L'eau vient d'tre coupe Harare. Une pidmie de cholra touche 9 provinces sur 10. 11071 cas de cholra ont cot la vie 425 personnes. Des groupes de soldats se sont attaqus des changeurs. L'arme, non paye, commence piller les magasins. De tels vnements dmontrent quel point la monnaie est symptomatique d'un rgime et dmontrent les dgts ventuellement mortels de l'absence de monnaie saine. En Autriche et en Allemagne le traumatisme sera tel que la BUBA , la banque centrale allemande aura toujours une politique extrmement conservatrice, fuira tout risque d'inflation au point de faire capoter les accords de Bretton Woods en 1971 pour viter les consquences d'une arrive inflationniste de dollars et finalement imposera son tat d'esprit la Banque Centrale Europenne (BCE). L'un des dsagrments de la crise conomique mondiale en cours est qu'elle est trs largement montaire donc svre. La fonction d'change que permet les monnaies est le seul garant de la paix dans le monde et la fin de la monnaie fiduciaire conventionnelle, que l'on entend par pices ou billets , pourrait tre la cause de nouveaux conflits sociaux sans prcdents . Un retour la valeur refuge des monnaies mtalliques telles que l' or et de l' argent apparait dans ce cadre inluctable. Les numismates collectionnent et tudient les formes circulantes de la monnaie (pices et billets). La recherche numismatique a permis de comprendre l'mergence des monnaies, leur diffusion, leur technique de production, leur manipulation. Mme si l'aspect artistique et le got de la collection priment, il ne faut pas ngliger la contribution de la numismatique l'histoire conomique. L'investissement en pices d'or est aussi un acte de prcaution contre la dvaluation des monnaies et le risque de dfaillance bancaire gnralise. Counterfeiting began at the inception of the currency. The first known fraud to date, referenced in Lydia, was virtually contemporaneous with the creation of the coin. It has long been punished by death. Everywhere, even today, the punishment of counterfeiting remains very high in the scale of penalties, similar to that incurred for a murder. Some notes which carried a time the promise of a refund eventually display only the penalties for counterfeiting. The development of digital and color printing have created a new risk which has forced central banks to implement technology more and more complex to counter the temptations offered by the ease of photocopying tickets. The changeover to the euro has allowed Europe to eliminate cuts that had become too easy to imitate. The widespread among merchants of devices to detect counterfeit notes reflects the rise of counterfeiting. Some theories suggest that left soldiers attacking the currency of a country could permanently undermine its foundations. We lent this intention to the Nazis and then the Soviet Union vis--vis the dollar. This fantasy has fueled a large literature but history does not include attempts have been if only the beginning of an effect. In contrast, extensively quotes the words of Keynes and Lenin explained that the best way to create the conditions for a revolution was to pervert the currency. Religions in general, focus on the spiritual and condemn the excessive importance given to the material world or the material world as a whole. Money, as a symbol and embodiment of the economy, supports the weight of this condemnation, without its utility is questioned (no major religion does not advocate a return to barter nor disapproves the exchange including in form of purchase). However, without condemning the money itself, Christianity and Islam condemn the trade, that is to say, lending at interest (the wear ). In the world of human interaction there are only three spheres Convictions ecological Concern for the future of the planet and the environmental concerns have developed a critical growth and its means. The money created by the credit instrument for growth, was thus put in the dock. To repay a loan at interest must necessarily growth or interest would capture any gradual capital. Since the currency is now almost entirely created by the credit mechanism, we must return to the practice of credit money is often presented as a "currency debt" in the text or videos protesters. The currency has had a profound influence on the evolution of the law. In the absence of money, public sanction can only take physical forms: confiscation of property, forced labor. It is relatively difficult to stagger. The currency used to simplify the system of fines and propose sanctions that may nuanced for offenses not too important not to interfere with the everyday lives of offenders. In civil matters the absence of currency requires compensation , that is to say the search for compensation in kind, systematic and often very difficult to implement in a fair and simple. Monetary compensation has been great progress. Governments are only able to give a legal tender currency, that is to say an ability to turn off all debt including tax debts and debts criminal or civil, any place and at any time in the area where a means of payment was legal tender. All monetary forms do not necessarily legal tender. Generally do not feature that only tickets issued by Central Bank and coins. The check is usually not legal tender. It may be refused by merchants. Yet, conversely, it is not possible to make all payments with a monetary form having legal tender. For example in France , while Article R642-3 of the Penal Code provides that "A refusal to receive coins or bank notes as legal tender is liable to a fine for contraventions of the second class . The issue of credit money is strictly regulated by the banking law and state institutions of control. Money is usually the companion of everyday citizens. The confidence he has in his currency was extremely important influences on economic activity. A psychological action to reassure the population has been practiced at all times. Currency stimulates the mystification of some characters. In France the most notable case is Mr. Antoine Pinay, "the hermit of Saint Chamond. Having successfully launched a large loan secured on gold at a time when French public finances of the Fourth Republic were at their lowest, it will become a kind of oracle that any finance minister had to see each issue a new loan. We live and Valery Giscard d'Estaing and Raymond Barre , make the pilgrimage to Saint-Chamond for the security of the oracle. In Germany, Herr Schacht was considered the father of a miracle that he succeeded in German to leave Germany as a result of the crisis of 1929 and has managed to survive the stigma of Nazism. More recently the Chairman of the Fed, the U.S. Alan Greenspan , was also widely seen as a financial wizard whose oracles purposely rarely understandable, were preyed fervently by the economic and stock market in the 1990s and up in 2007. Now regarded as one of the instigators of the subprime crisis, the magic of his words has abated somewhat. All major plans being launched to address the currency crisis, banking, stock markets and economic courts have a strong psychological dimension of action. The G20 meeting in Washington in November 2008 was primarily intended to show the resolve and unity of all major countries. The display of massive bailouts and stimulus packages are also widely colossal psychological essence. If they failed to remove the pessimism nor alter the course of the recession, they still managed to stave off a banking panic and a disastrous run on deposits. The psychology of the consumer and the investor who is pushing the euphoria is a very strong contraction, is a major economic force. But it is very difficult to influence. Gold, psychological value, if any, is a good indicator of trust. Although it is discredited refuge in times of fear on the currency. Currently the dollar has lost about 95% of its value in gold, reflecting the impact of rampant inflation since 1971 and some fled before this currency. This devaluation is all the more remarkable as the production of gold has never been the highest. While it had been extracted with 45 360 tonnes of the time origin to 1956, 102 700 tons Museums monetary Popular article Australia (and Norfolk Island ) Kiribati Nauru Tuvalu New Zealand (and Tokelau ) Cook Islands Niue United Kingdom ( Pitcairn Islands ) Intermediate exchanges and contracts
Intermediate trade
Contracts
Book value
Unit of Account
The current forms of money
The coin pieces of metal
Paper money
The book money
Electronic money
The virtual currencies and measures of money supply
The creation of money
General Principles
The creation of bank money by bank credit
The Money Market
History
Proto-currencies
Units of Account Non Circulating
The invention of coinage
The transgression of the Lydian kings
The implementation of a complete monetary system in Athens
The expansion of the coinage in antiquity
Rome
China
The metal coins in the Middle Ages
The hazards of bimetallism the Renaissance to 1873
La courte priode de l'talon-or
Economic theories
The beginnings
Mercantilism and the currency
The currency turmoil after the 1914 war and the rise of Keynesianism
The exchange rate and the dominance of ideas of Friedman
Current uncertainties
Major political disputes around the money
The quarrel between banking and currency principle "principle"
The dispute over the demonetization of silver metal
The American quarrel about the creation of a central bank
The quarrel of the Euro
Major currency crises
The bank panic
L'hyperinflation
La rupture du systme de change
La rupture du march interbancaire : cas des CDO (Collateralised Debt Obligation)
Gravit des crises montaires
Amateurs et contempteurs de la monnaie
Les amateurs
Les numismates
The Counterfeiters
The detractors of the currency
The moral and religious convictions
Convictions social
Other aspects of the currency
Money and the Law
Legal tender, legal tender and inconvertible currency
The psychological aspects of money
References
See also
Related articles
Bibliography
External link
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