Learn some financial knowledge every day (3) Money-from paper money to electronic money.

Money is one of our most common things. But it is often these platitudes that we ignore the principle behind them.

Learn some financial knowledge every day (1) currency exchange.

Learn some financial knowledge every day (2) Money-Coin.

As mentioned in the last section, coinage is not worth it, as long as everyone accepts it. Then if we push it to the extreme, it is that money itself can be worthless. So, paper money appeared. It can be said that paper money is completely the product of ideological emancipation.

As we all know, the earliest paper money was China's "Jiaozi" which appeared in Sichuan during the Northern Song Dynasty. Unfortunately, it is only recorded in literature, and there is no physical circulation.

In modern society, paper money is usually divided into two types, one is "bank notes" issued by banks, and the other is issued by the government, such as "US dollars".

In essence, paper money is similar to IOUs. You have 100 yuan, which is equivalent to the goods owed to you by the government. But of course, the government will not repay you, but get rid of its "debt" burden by forcing everyone to accept this kind of paper money. So the essence of paper money is the credibility and debt of the government.

Coins are tokens in money, and they are definitely worthless. Paper money plus tokens is cash, also called money. Cash itself has no value or low value. People accepted it because they were guaranteed by the government and made corresponding laws. So cash is also called credit currency or legal compensation currency.

Standards, that is, centers and benchmarks.

Currency standard refers to the materials that a country needs to prepare to issue currency, such as gold, silver or other metals.

The bookkeeping base currency, the standard currency of a country, has the function of measuring standards. Functional currency has unlimited legal compensation, that is, no matter how much functional currency is used, the other party cannot refuse it, otherwise it is illegal.

The gold standard is a monetary standard. Under the gold standard, the government needs to prepare a certain amount of gold for each unit of currency. In other words, money and gold are freely convertible, and money is only the representative of gold.

The international gold exchange standard, that is, the dollar-gold standard, or the Bretton Woods system, which we often hear, was decided at the Bretton Woods meeting in 1944. According to this system, there is a fixed ratio between gold and the dollar: 1 ounce of gold = US$ 35, and the currencies of various countries also maintain a fixed exchange rate relationship with the US dollar. Countries can exchange gold with the United States at this exchange rate, and the United States must exchange it unconditionally.

197 1 year, the United States announced that it would stop the free exchange of dollars and gold, and this system collapsed. Related content will be discussed later.

After the collapse of the gold standard, the standard currency of all countries in the world is paper money, which has nothing to do with gold, silver or other metals. The government does not need to prepare gold and silver in advance to issue currency. It needs paper and a printing press, so to speak.

The coins mentioned above have been pushed to the extreme. Since almost worthless pieces of paper can be money, we all agree that what's wrong with that string of electronic pulse messages? With the emergence of electronic money, lecture notes are no longer subject to geographical restrictions. Theoretically, you can sit in front of the computer and trade with anyone in the world.

Money is generally issued by the central bank, and electronic money is issued by commercial banks (such as debit cards and credit cards of ICBC), bus companies (transportation cards) and telecom companies (telephone cards).

Some economists believe that electronic money is not money, but a substitute or manifestation of bank deposits, and the real money is still bank deposits.

See you tomorrow ~