172-658: A currency is a standardization of money in any form, in use or circulation as a medium of exchange , for example banknotes and coins . A more general definition is that a currency is a system of money in common use within a specific environment over time, especially for people in a nation state. Under this definition, the British Pound sterling (£), euros (€), Japanese yen (¥), and U.S. dollars (US$ ) are examples of (government-issued) fiat currencies . Currencies may act as stores of value and be traded between nations in foreign exchange markets , which determine
344-434: A legal tender and accepted by governments for taxes. However, the instability in the exchange rate between the two grew over the course of the 19th century, with the increases both in the supply of these metals, particularly silver, and in trade. The parallel use of both metals is called bimetallism , and the attempt to create a bimetallic standard where both gold and silver backed currency remained in circulation occupied
516-427: A monetary aggregate . Economists employ different ways to measure the stock of money or money supply, reflected in different types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money. The most commonly used monetary aggregates (or types of money) are conventionally designated M1, M2, and M3. These are successively larger aggregate categories: M1
688-459: A store of value : its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate. Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time. The term "financial capital" is a more general and inclusive term for all liquid instruments, whether or not they are
860-503: A century when gold and paper money backed by gold were used as money in the 18th and 19th centuries. Elam Elam ( / ˈ iː l ə m / ) was an ancient civilization centered in the far west and southwest of modern-day Iran , stretching from the lowlands of what is now Khuzestan and Ilam Province as well as a small part of southern Iraq . The modern name Elam stems from the Sumerian transliteration elam(a) , along with
1032-509: A commodity under the Commodity Exchange Act . There are also branded currencies, for example 'obligation' based stores of value, such as quasi-regulated BarterCard, Loyalty Points (Credit Cards, Airlines) or Game-Credits (MMO games) that are based on reputation of commercial products. Historically, pseudo-currencies have also included company scrip , a form of wages that could only be exchanged in company stores owned by
1204-423: A country has control of its own currency, that control is exercised either by a central bank or by a Ministry of Finance . The institution that has control of monetary policy is referred to as the monetary authority. Monetary authorities have varying degrees of autonomy from the governments that create them. A monetary authority is created and supported by its sponsoring government, so independence can be reduced by
1376-444: A fixed quantity of a commodity such as gold or silver. The value of representative money stands in direct and fixed relation to the commodity that backs it, while not itself being composed of that commodity. Fiat money or fiat currency is money whose value is not derived from any intrinsic value or guarantee that it can be converted into a valuable commodity (such as gold). Instead, it has value only by government order (fiat). Usually,
1548-415: A fraction of their deposits , while the banks maintain an obligation to redeem all these deposits upon demand - a practise known as fractional-reserve banking . Commercial bank money differs from commodity and fiat money in two ways: firstly it is non-physical, as its existence is only reflected in the account ledgers of banks and other financial institutions, and secondly, there is some element of risk that
1720-435: A freely convertible currency, domestic firms will have to compete fiercely with their foreign counterparts. The development of competition among them will affect the implementation effect of currency convertibility. In addition, microeconomics is a prerequisite for macroeconomic conditions. Since currency convertibility is the cross-border flow of goods and capital, it will have an impact on the macro economy. This requires that
1892-553: A government ( taxes ), or government agencies (fees, fines). Others simply get traded for their economic value. The concept of a digital currency has arisen in recent years. Whether government-backed digital notes and coins (such as the digital renminbi in China, for example) will be successfully developed and implemented remains unknown. Digital currencies that are not issued by a government monetary authority , such as cryptocurrencies like Bitcoin , are different because their value
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#17327660620252064-418: A group of five rulers of uncertain affiliation. They are identified by their use of the older title, "king of Susa and of Anshan", and by calling themselves "servant of Kirwashir ", an Elamite deity, thereby introducing the pantheon of the highlands to Susiana. The city of Susa itself is one of the oldest in the world dating back to around 4200 BC. Since its founding Susa was known as a central power location for
2236-408: A local currency. Money Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts , such as taxes , in a particular country or socio-economic context. The primary functions which distinguish money are: medium of exchange , a unit of account , a store of value and sometimes, a standard of deferred payment . Money
2408-473: A means for merchants to exchange heavy coinage for receipts of deposit issued as promissory notes from shops of wholesalers, notes that were valid for temporary use in a small regional territory. In the 10th century, the Song dynasty government began circulating these notes amongst the traders in their monopolized salt industry. The Song government granted several shops the sole right to issue banknotes, and in
2580-487: A metric of perceived value in conjunction with one another, in various commodity valuation or price system economies. The use of commodity money is similar to barter, but a commodity money provides a simple and automatic unit of account for the commodity which is being used as money. Although some gold coins such as the Krugerrand are considered legal tender , there is no record of their face value on either side of
2752-455: A new unit of account , which helped lead to banking. Archimedes' principle provided the next link: coins could now be easily tested for their fine weight of the metal, and thus the value of a coin could be determined, even if it had been shaved, debased or otherwise tampered with (see Numismatics ). In most major economies using coinage, copper, silver, and gold formed three tiers of coins. Gold coins were used for large purchases, payment of
2924-557: A new army to help the Babylonians and Chaldeans against the Assyrians at the battle of Halule in 691. Both sides claimed the victory in their annals, but Babylon was destroyed by Sennacherib only two years later, and its Elamite allies defeated in the process. The reigns of Humban-Haltash I (688–681 BC) and Humban-Haltash II (680–675 BC) saw a deterioration of Elamite-Babylonian relations, and both of them raided Sippar . At
3096-418: A note has no intrinsic value, there was nothing to stop issuing authorities from printing more of it than they had specie to back it with. Second, because it increased the money supply, it increased inflationary pressures, a fact observed by David Hume in the 18th century. The result is that paper money would often lead to an inflationary bubble, which could collapse if people began demanding hard money, causing
3268-492: A petty king in the first half of the 6th century). Elamite royalty in the final century preceding the Achaemenids was fragmented among different small kingdoms, the united Elamite nation having been destroyed and colonised by the Assyrians. The three kings at the close of the 7th century (Shuttir-Nakhkhunte, Khallutush-In-Shushinak and Atta-Khumma-In-Shushinak) still called themselves "king of Anzan and of Susa" or "enlarger of
3440-475: A response to invasion from Sumer during the Old Elamite period. Elamite strength was based on an ability to hold these various areas together under a coordinated government that permitted the maximum interchange of the natural resources unique to each region. Traditionally, this was done through a federated governmental structure. The Proto-Elamite city of Susa was founded around 4000 BC in the watershed of
3612-464: A series of bitter internal civil wars which also spread to Babylonia. The Iranian Medes , Parthians , Persians and Sagartians , who had been largely subject to Assyria since their arrival in the region around 1000 BC, quietly took full advantage of the anarchy in Assyria, and in 616 BC freed themselves from Assyrian rule. The Medians took control of Elam during this period. Cyaxares the king of
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#17327660620253784-558: A significant impact on the generation of exchange rates. Currency convertibility is closely linked to economic development and finance. There are strict conditions for countries to achieve currency convertibility, which is a good way for countries to improve their economies. The currencies of some countries or regions in the world are freely convertible, such as the US dollar, Australian dollar and Japanese yen. The requirements for currency convertibility can be roughly divided into four parts: With
3956-591: A singular monetary system for all purchases and debts in the United States, public and private. Along with the power to coin money, the United States Congress has the concurrent power to restrain the circulation of money which is not issued under its own authority in order to protect and preserve the constitutional currency. It is a violation of federal law for individuals, or organizations to create private coin or currency systems to compete with
4128-421: A small regional territory. In the 10th century, the Song dynasty government began to circulate these notes amongst the traders in its monopolized salt industry. The Song government granted several shops the right to issue banknotes, and in the early 12th century the government finally took over these shops to produce state-issued currency. Yet the banknotes issued were still only locally and temporarily valid: it
4300-751: A specific country and a final letter denoting a specific monetary unit of account. Many currencies use a currency symbol . These are not subject to international standards and are not unique: the dollar sign in particular has many uses. Distinct from centrally controlled government-issued currencies, private decentralized trust-reduced networks support alternative currencies (such as Bitcoin and Ethereum's ether , which are classified as cryptocurrency since transference transactions are assured through cryptographic signatures validated by all users. With few exceptions , these currencies are not asset backed . The U.S. Commodity Futures Trading Commission has declared Bitcoin (and, by extension, similar products) to be
4472-400: A standard of deferred payment as a distinguished function, but rather subsuming it in the others. There have been many historical disputes regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange conflicts with its role as
4644-456: A system of representative money . This occurred because gold and silver merchants or banks would issue receipts to their depositors, redeemable for the commodity money deposited. Eventually, these receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song dynasty . These banknotes, known as " jiaozi ", evolved from promissory notes that had been used since
4816-533: A treaty forced upon them by Ashur-Dan I . Kutir-Nakhkhunte's son Khutelutush-In-Shushinak was probably born of Kutir-Nakhkhunte and his own daughter, Nakhkhunte-utu. He was defeated by Nebuchadnezzar I of Babylon, who sacked Susa and returned the statue of Marduk , but who was then himself defeated by the Assyrian king Ashur-resh-ishi I . He fled to Anshan, but later returned to Susa, and his brother Shilhana-Hamru-Lagamar may have succeeded him as last king of
4988-411: A uniformly recognized tender. When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange . It thereby avoids the inefficiencies of a barter system, such as the inability to permanently ensure " coincidence of wants ". For example, between two parties in a barter system, one party may not have or make the item that the other wants, indicating
5160-432: Is a price at which two currencies can be exchanged against each other. This is used for trade between the two currency zones. Exchange rates can be classified as either floating or fixed . In the former, day-to-day movements in exchange rates are determined by the market; in the latter, governments intervene in the market to buy or sell their currency to balance supply and demand at a static exchange rate. In cases where
5332-404: Is also used. M0 is base money , or the amount of money actually issued by the central bank of a country. It is measured as currency plus deposits of banks and other institutions at the central bank. M0 is also the only money that can satisfy the reserve requirements of commercial banks . In current economic systems, money is created by two procedures: Legal tender , or narrow money (M0)
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5504-602: Is conventionally divided into three periods, spanning more than two millennia. The period before the first Elamite period is known as the proto-Elamite period: Proto-Elamite civilization grew up east of the Tigris and Euphrates alluvial plains; it was a combination of the lowlands and the immediate highland areas to the north and east. At least three proto-Elamite states merged to form Elam: Anshan , Awan , and Shimashki. References to Awan are generally older than those to Anshan, and some scholars suggest that both states encompassed
5676-765: Is coterminous with Elam is to misunderstand the artificiality and indeed the alienness of Elam as a construct imposed from without on the peoples of the southwestern highlands of the Zagros mountain range, the coast of Fars and the alluvial plain drained by the Karun-Karkheh river system. Prehistorically the area was well settled during the Ubaid period and shared many aspects of Ubaid cultures. Knowledge of Elamite history remains largely fragmentary, reconstruction being based on mainly Mesopotamian ( Sumerian , Akkadian , Assyrian and Babylonian ) sources. The history of Elam
5848-429: Is currency (coins and bills) plus demand deposits (such as checking accounts); M2 is M1 plus savings accounts and time deposits under $ 100,000; M3 is M2 plus larger time deposits and similar institutional accounts. M1 includes only the most liquid financial instruments, and M3 relatively illiquid instruments. The precise definition of M1, M2, etc. may be different in different countries. Another measure of money, M0,
6020-403: Is distinguished by some texts, particularly older ones, other texts subsume this under other functions. A "standard of deferred payment" is an accepted way to settle a debt —a unit in which debts are denominated, and the status of money as legal tender , in those jurisdictions which have this concept, states that it may function for the discharge of debts. When debts are denominated in money,
6192-712: Is economic turmoil involving the national currency. An example of this is the Argentinian economic crisis of 2002 in which IOUs issued by local governments quickly took on some of the characteristics of local currencies. One of the best examples of a local currency is the original LETS currency, founded on Vancouver Island in the early 1980s. In 1982, the Canadian Central Bank 's lending rates ran up to 14% which drove chartered bank lending rates as high as 19%. The resulting currency and credit scarcity left island residents with few options other than to create
6364-590: Is market-dependent and has no safety net . Various countries have expressed concern about the opportunities that cryptocurrencies create for illegal activities such as scams , ransomware ( extortion ), money laundering and terrorism . In 2014, the United States IRS advised that virtual currency is treated as property for federal income-tax purposes, and it provides examples of how long-standing tax principles applicable to transactions involving property apply to virtual currency. Originally, currency
6536-424: Is no evidence of a society or economy that relied primarily on barter. Instead, non-monetary societies operated largely along the principles of gift economy and debt . When barter did in fact occur, it was usually between either complete strangers or potential enemies. Many cultures around the world eventually developed the use of commodity money . The Mesopotamian shekel was a unit of weight, and relied on
6708-487: Is often outlawed by governments in order to preserve the legitimacy of the constitutional currency for the benefit of all citizens. For example, Article I, section 8, clause 5 of the United States Constitution delegates to Congress the power to coin money and to regulate the value thereof. This power was delegated to Congress in order to establish and preserve a uniform standard of value and to insure
6880-484: Is the cash created by a Central Bank by minting coins and printing banknotes. Bank money , or broad money (M1/M2) is the money created by private banks through the recording of loans as deposits of borrowing clients, with partial support indicated by the cash ratio . Currently, bank money is created as electronic money. Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far
7052-466: Is too high or too low, which can easily trigger speculation and undermine the stability of macroeconomic and financial markets. Therefore, to maintain the level of exchange rate, a proper exchange rate regime is crucial. In economics, a local currency is a currency not backed by a national government and intended to trade only in a small area. Advocates such as Jane Jacobs argue that this enables an economically depressed region to pull itself up, by giving
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7224-595: The Hittite Empire in 1595 BC. The Kassite king of Babylon Kurigalzu II who had been installed on the throne by Ashur-uballit I of the Middle Assyrian Empire (1366–1020 BC), temporarily occupied Elam around 1320 BC, and later (c. 1230 BC) another Kassite king, Kashtiliash IV , fought Elam unsuccessfully. Kassite-Babylonian power waned, as they became dominated by the northern Mesopotamian Middle Assyrian Empire . Kiddin-Khutran of Elam repulsed
7396-853: The Icelandic króna and the Japanese yen . Mauritania and Madagascar are the only remaining countries that have theoretical fractional units not based on the decimal system; instead, the Mauritanian ouguiya is in theory divided into 5 khoums , while the Malagasy ariary is theoretically divided into 5 iraimbilanja . In these countries, words like dollar or pound "were simply names for given weights of gold". Due to inflation khoums and iraimbilanja have in practice fallen into disuse. (See non-decimal currencies for other historic currencies with non-decimal divisions.) Subject to variation around
7568-532: The Medes , Persians , Parthians and Sagartians entered into an alliance with a coalition of fellow former vassals of Assyria, including Nabopolassar of Babylon and Chaldea , and also the Scythians and Cimmerians , against Sin-shar-ishkun of Assyria, who was faced with unremitting civil war in Assyria itself. This alliance then attacked a disunited and war weakened Assyria, and between 616 BC and 599 BC at
7740-641: The Median dominated Iranian peoples , and was incorporated into the Median Empire (612–546 BC) and then the succeeding Achaemenid Empire (546–332 BC), with Assyria suffering the same fate. (see Achaemenid Assyria , Athura). The prophet Ezekiel describes the status of their power in the 12th year of the Hebrew Babylonian Captivity in 587 BC: There is Elam and all her multitude, All around her grave, All of them slain, fallen by
7912-660: The Neo-Assyrian Empire until the late 7th century. More details are known from the late 8th century BC, when the Elamites were allied with the Chaldean chieftain Merodach-baladan to defend the cause of Babylonian independence from Assyria. Humban-nikash I (743–717 BC) supported Merodach-baladan against Sargon II , apparently without success; while his successor, Shutruk-Nahhunte II (716–699 BC),
8084-521: The New World and brought back gold and silver to Spain, or when gold was discovered in California in 1848 . This caused inflation, as the value of gold went down. However, if the rate of gold mining could not keep up with the growth of the economy, gold became relatively more valuable, and prices (denominated in gold) would drop, causing deflation. Deflation was the more typical situation for over
8256-840: The Sukkalmah dynasty (c. 1970 – c. 1770 BC) after "Great regents", the title borne by its members, also called the Epartid dynasty after the name of its founder Ebarat/ Eparti, was roughly contemporary with the Old Assyrian Empire , and Old Babylonian period in Mesopotamia, being younger by approximately sixty years than the Akkadian-speaking Old Assyrian Empire in Upper Mesopotamia , and almost seventy-five years older than
8428-559: The Sumerian king list . Elamite history can only be traced from records dating to beginning of the Akkadian Empire (2335–2154 BC) onwards. The Proto-Elamite states in Jiroft and Zabol (not universally accepted), present a special case because of their great antiquity. In ancient Luristan , bronze-making tradition goes back to the mid-3rd millennium BC, and has many Elamite connections. Bronze objects from several cemeteries in
8600-643: The Sumerians of Mesopotamia and also Gutians from northwestern Iran, alternating with periods of peace and diplomatic approaches. The Elamite state of Simashki at this time also extended into northern Iran, and possibly even as far as the Caspian Sea. Shu-Sin of Ur gave one of his daughters in marriage to a prince of Anshan . But the power of the Sumerians was waning; Ibbi-Sin in the 21st century did not manage to penetrate far into Elam, and in 2004 BC,
8772-476: The United States greenback , to pay for military expenditures. They could also set the terms at which they would redeem notes for specie, by limiting the amount of purchase, or the minimum amount that could be redeemed. By 1900, most of the industrializing nations were on some form of a gold standard, with paper notes and silver coins constituting the circulating medium. Private banks and governments across
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#17327660620258944-579: The Uruk period . Proto-Elamite influence from Mesopotamia in Susa becomes visible from about 3200 BC, and texts in the still undeciphered Proto-Elamite writing system continue to be present until about 2700 BC. The Proto-Elamite period ends with the establishment of the Awan dynasty . The earliest known historical figure connected with Elam is the king Enmebaragesi of Kish (c. 2650 BC?), who subdued it, according to
9116-514: The cash form of a currency. Banknotes were initially mostly paper, but Australia's Commonwealth Scientific and Industrial Research Organisation developed a polymer currency in the 1980s; it went into circulation on the nation's bicentenary in 1988. Polymer banknotes had already been introduced in the Isle of Man in 1983. As of 2016, polymer currency is used in over 20 countries (over 40 if counting commemorative issues), and dramatically increases
9288-451: The instability in the ratio between the two grew over the 19th century, with the increase both in the supply of these metals, particularly silver, and of trade. This is called bimetallism and the attempt to create a bimetallic standard where both gold and silver backed currency remained in circulation occupied the efforts of inflationists. Governments at this point could use currency as an instrument of policy, printing paper currency such as
9460-404: The market price of the metal content as a commodity , rather than their legal tender face value (which is usually only a small fraction of their bullion value). Fiat money, if physically represented in the form of currency (paper or coins), can be accidentally damaged or destroyed. However, fiat money has an advantage over representative or commodity money, in that the same laws that created
9632-416: The money supply of an economy. In other words, the money supply is the number of financial instruments within a specific economy available for purchasing goods or services. Since the money supply consists of various financial instruments (usually currency, demand deposits, and various other types of deposits), the amount of money in an economy is measured by adding together these financial instruments creating
9804-465: The 11th century was the impetus for the massive production of paper money in premodern China. At around the same time in the medieval Islamic world , a vigorous monetary economy was created during the 7th–12th centuries on the basis of the expanding levels of circulation of a stable high-value currency (the dinar ). Innovations introduced by economists, traders and merchants of the Muslim world include
9976-640: The 12th century BC, gold and silver figurines of Elamite worshippers are shown carrying a sacrificial goat. These divine and royal statues were meant to assure the king of the enduring protection of the deity, well-being and a long life. Works which showed a ruler and his performance of a ritual action were intended to eternalize the effectiveness of such deeds. Found near the Temple of Inshushinak in Susa , these statuettes would have been considered charged with beneficial power. While archaeologists cannot be certain that
10148-576: The 7th century. However, they did not displace commodity money and were used alongside coins. In the 13th century, paper money became known in Europe through the accounts of travellers, such as Marco Polo and William of Rubruck . Marco Polo's account of paper money during the Yuan dynasty is the subject of a chapter of his book, The Travels of Marco Polo , titled " How the Great Kaan Causeth
10320-473: The Assyrian king Ashurbanipal (668–627 BC), who sent wheat to Susiana during a famine. But these friendly relations were only temporary, and Urtaku was killed in battle during a failed Elamite attack on Assyria. His successor Tepti-Humban-Inshushinak (664–653 BC) attacked Assyria, but was defeated and killed by Ashurbanipal following the battle of the Ulaï in 653 BC; and Susa itself was sacked and occupied by
10492-455: The Assyrians. In this same year the Assyrian vassal Median state to the north fell to the invading Scythians and Cimmerians under Madyes , and displacing another Assyrian vassal people, the Parsu ( Persians ) to Anshan which their king Teispes captured that same year, turning it for the first time into an Indo-Iranian kingdom under Assyrian dominance that would a century later become
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#173276606202510664-686: The Awan dynasty collapsed as Elam was temporarily overrun by the Guti , another pre-Iranic people from what is now north west Iran who also spoke a language isolate . About a century later, the Sumerian king Shulgi of the Neo-Sumerian Empire retook the city of Susa and the surrounding region. During the first part of the rule of the Simashki dynasty, Elam was under intermittent attack from
10836-565: The Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country ." Banknotes were first issued in Europe by Stockholms Banco in 1661 and were again also used alongside coins. The gold standard , a monetary system where the medium of exchange are paper notes that are convertible into pre-set, fixed quantities of gold, replaced the use of gold coins as currency in the 17th–19th centuries in Europe. These gold standard notes were made legal tender , and redemption into gold coins
11008-879: The Elamite dynasty were referred to as "great king" and "father" by kings in Syria and Mesopotamia and were the only kings that the Mesopotamian Kings considered to be higher in status than themselves. Siwe-Palar-Khuppak , who for some time was the most powerful person in the area, respectfully addressed as "Father" by Mesopotamian kings such as Zimrilim of Mari , Shamshi-Adad I of Assyria , and even Hammurabi of Babylon. During his reign alone, Elam interfered extensively with Mesopotamian politics, allowing messengers and envoys to travel far west to Emar and Qatna in Syria. His messenger reached Emar and sent his three servants to King Amut-piʾel II of Qatna (1772–1762 BC), and
11180-623: The Elamites and for later Persian dynasties. Susa's power would peak during the Middle Elamite period, when it would be the region's capital. Of the Igehalkids (c. 1400 – 1210 BC), ten rulers are known, though their number was possibly larger. Some of them married Kassite princesses. The Kassites were also a language isolate speaking people from the Zagros Mountains who had taken Babylonia shortly after its sacking by
11352-550: The Elamites defeated the Kassites permanently, killing the Kassite king of Babylon, Zababa-shuma-iddin , and replacing him with his eldest son, Kutir-Nakhkhunte, who held it no more than three years before being ejected by the native Akkadian-speaking Babylonians . The Elamites then briefly came into conflict with Assyria , managing to take the Assyrian city of Arrapha (modern Kirkuk ) before being ultimately defeated and having
11524-415: The Elamites, allied with the people of Susa and led by king Kindattu , the sixth king of Simashki, managed to sack Ur and lead Ibbi-Sin into captivity, ending the third dynasty of Ur . The Akkadian kings of Isin , successor state to Ur, managed to drive the Elamites out of Ur, rebuild the city, and to return the statue of Nanna that the Elamites had plundered. The succeeding dynasty, often called
11696-538: The Elamites, overthrew Rim-Sin of Larsa, and established a short lived Babylonian Empire in Mesopotamia. Little is known about the latter part of this dynasty, since sources again become sparse with the Kassite rule of Babylon (from c. 1595 BC). Many archaeological finds suggest that maritime trade along the shores of Africa and Asia started several millennia ago. Trade between the Indus Valley civilization and
11868-587: The Indus were found in Susa in the excavation of the tell of the citadel. In particular, carnelian beads with an etched design in white were probably imported from the Indus Valley, and made according to a technique of acid-etching developed by the Harappans . Exchanges seem to have waned after 1900 BC, together with the disappearance of the Indus valley civilization. The Middle Elamite period began with
12040-588: The Iranian plateau, and military expeditions to the area became more common. With the collapse of Akkad under Sargon's great-great-grandson, Shar-kali-sharri , Elam declared independence under the last Awan king, Kutik-Inshushinak (c. 2240 – c. 2220 BC), and threw off the Akkadian language, promoting in its place the brief Linear Elamite script. Kutik-Inshushinnak conquered Susa and Anshan, and seems to have achieved some sort of political unity. Following his reign,
12212-638: The Iranian plateau. Assyrian sources beginning around 800 BC distinguish the "powerful Medes", i.e. the actual Medes , Persians , Parthians , Sagartians , etc. Among these pressuring tribes were the Parsu , first recorded in 844 BC as living on the southeastern shore of Lake Urmiah , but who by the end of this period would cause the Elamites' original home, the Iranian Plateau, to be renamed Persia proper. These newly arrived Iranian peoples were also conquered by Assyria, and largely regarded as vassals of
12384-455: The Iranian province of Khuzestan around the river Karun . In ancient times, several names were used to describe this area. The ancient geographer Ptolemy was the earliest to call the area Susiana , referring to the country around Susa. Another ancient geographer, Strabo , viewed Elam and Susiana as two different geographic regions. He referred to Elam ("land of the Elymaei") as primarily
12556-562: The Kassites by defeating Enlil-nadin-shumi in 1224 BC and Adad-shuma-iddina around 1222–1217 BC. Under the Igehalkids, Akkadian inscriptions were rare, and Elamite highland gods became firmly established in Susa. Under the Shutrukids (c. 1210 – 1100 BC), the Elamite empire reached the height of its power. Shutruk-Nakhkhunte and his three sons, Kutir-Nakhkhunte II, Shilhak-In-Shushinak, and Khutelutush-In-Shushinak were capable of frequent military campaigns into Kassite Babylonia (which
12728-578: The Khuzestan lowlands. Its culture played a crucial role during the Persian Achaemenid dynasty that succeeded Elam, when the Elamite language remained among those in official use. Elamite is generally considered a language isolate unrelated to any other languages. According to Daniel T. Potts, Walther Hinz was less cautious in suggesting that the Elamites were ‘Proto-Lurs’, that is,
12900-626: The Mechanism of Exchange (1875) , William Stanley Jevons famously analyzed money in terms of four functions: a medium of exchange , a common measure of value (or unit of account ), a standard of value (or standard of deferred payment ), and a store of value . By 1919, Jevons's four functions of money were summarized in the couplet : This couplet would later become widely popular in macroeconomics textbooks. Most modern textbooks now list only three functions, that of medium of exchange , unit of account , and store of value , not considering
13072-512: The Old Babylonian Empire . This period is said by many to be confusing and difficult to reconstruct. It was apparently founded by Eparti I. During this time, Susa was under Elamite control, but Akkadian-speaking Mesopotamian states such as Larsa and Isin continually tried to retake the city. Around 1850 BC Kudur-Mabuk , apparently king of another Akkadian state to the north of Larsa, managed to install his son, Warad-Sin , on
13244-465: The Shutrukid dynasty. Following Khutelutush-In-Shushinak, the power of the Elamite empire began to wane seriously, as after the death of this ruler, Elam disappears into obscurity for more than three centuries. Very little is known of this period. Anshan was still at least partially Elamite. There appear to have been unsuccessful alliances of Elamites, Babylonians, Chaldeans and other peoples against
13416-634: The United States. At various times countries have either re-stamped foreign coins or used currency boards , issuing one note of currency for each note of a foreign government held, as Ecuador currently does. Each currency typically has a main currency unit (the dollar , for example, or the euro ) and a fractional unit, often defined as 1 ⁄ 100 of the main unit: 100 cents = 1 dollar , 100 centimes = 1 franc , 100 pence = 1 pound , although units of 1 ⁄ 10 or 1 ⁄ 1000 occasionally also occur. Some currencies do not have any smaller units at all, such as
13588-609: The ancestors of inhabitants of modern-day Lurestan in western Iran. The Elamite language endonym of Elam as a country appears to have been Hatamti ( [REDACTED] in Linear Elamite ), or Haltamti ( Cuneiform Elamite : 𒁹𒄬𒆷𒁶𒋾 halatamti ). Exonyms included the Sumerian names ELAM.MA 𒉏𒈠𒆠 and ELAM , the Akkadian Elamû (masculine/neuter) and Elamītu (feminine) meant "resident of Susiana, Elamite". The Sumerian term elam also referred to
13760-461: The bank or financial institution any prior notice. Banks have the legal obligation to return funds held in demand deposits immediately upon demand (or 'at call'). Demand deposit withdrawals can be performed in person, via checks or bank drafts, using automatic teller machines (ATMs), or through online banking . Commercial bank money is created by commercial banks whose reserves (held as cash and other highly liquid assets) typically constitute only
13932-510: The beginning of Esarhaddon 's reign in Assyria (681–669 BC), Nabu-zer-kitti-lišir, an ethnically Elamite governor in the south of Babylonia, revolted and besieged Ur , but was routed by the Assyrians and fled to Elam where the king of Elam, fearing Assyrian repercussions, took him prisoner and put him to the sword. Urtaku (674–664 BC) for some time wisely maintained good relations with
14104-471: The books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries. The word money derives from the Latin word moneta with the meaning "coin" via French monnaie . The Latin word is believed to originate from a temple of Juno , on Capitoline , one of Rome's seven hills. In the ancient world, Juno
14276-431: The business policies of commercial banks and the preferences of households - factors which the central bank can influence, but not control completely. Contemporary central banks generally do not control the creation of money, nor do they try to, though their interest rate-setting monetary policies naturally affect the amount of loans and deposits that commercial banks create. The development of computer technology in
14448-412: The changes in the international exchange rate. Fiscal policies , such as transfer payments, taxation ratios, and other factors, dominate the profitability of capital and economic development, and the ratio of national debt issuance to deficit determines the repayment capacity and credit rating of the country. Such policies determine the mechanism of linking domestic and foreign currencies and therefore have
14620-400: The circulating medium. Private banks and governments across the world followed Gresham's law : keeping the gold and silver they received but paying out in notes. This did not happen all around the world at the same time, but occurred sporadically, generally in times of war or financial crisis, beginning in the early 20th century and continuing across the world until the late 20th century, when
14792-402: The cities of Mesopotamia and Elam, can be inferred from numerous find of Indus artifacts, particularly in the excavation at Susa . Various objects made with shell species that are characteristic of the Indus coast, particularly Trubinella pyrum and Fasciolaria trapezium , have been found in the archaeological sites of Mesopotamia and Susa dating from around 2500–2000 BC. Carnelian beads from
14964-420: The claim will not be fulfilled if the financial institution becomes insolvent. The money multiplier theory presents the process of creating commercial bank money as a multiple (greater than 1) of the amount of base money created by the country's central bank , the multiple itself being a function of the legal regulation of banks imposed by financial regulators (e.g., potential reserve requirements ) beside
15136-558: The coin. The rationale for this is that emphasis is laid on their direct link to the prevailing value of their fine gold content. American Eagles are imprinted with their gold content and legal tender face value . In 1875, the British economist William Stanley Jevons described the money used at the time as " representative money ". Representative money is money that consists of token coins , paper money or other physical tokens such as certificates, that can be reliably exchanged for
15308-414: The common currency within an economy. Money is the most liquid asset because it is universally recognized and accepted as a common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter. Liquid financial instruments are easily tradable and have low transaction costs . There should be no (or minimal) spread between the prices to buy and sell
15480-427: The country, for "all debts, public and private", in the case of the United States dollar . The money supply of a country comprises all currency in circulation ( banknotes and coins currently issued) and, depending on the particular definition used, one or more types of bank money (the balances held in checking accounts , savings accounts , and other types of bank accounts ). Bank money, whose value exists on
15652-448: The currencies used from the 15th century onwards to sell slaves. African currency is still notable for its variety, and in many places, various forms of barter still apply. The prevalence of metal coins possibly led to the metal itself being the store of value: first copper, then both silver and gold, and at one point also bronze. Today other non-precious metals are used for coins. Metals were mined, weighed, and stamped into coins. This
15824-425: The definition which focuses on the currency systems of countries. One can classify currencies into three monetary systems : fiat money , commodity money , and representative money , depending on what guarantees a currency's value (the economy at large vs. the government's precious metal reserves ). Some currencies function as legal tender in certain jurisdictions , or for specific purposes, such as payment to
15996-581: The demand for paper notes to fall to zero. The printing of paper money was also associated with wars, and financing of wars, and therefore regarded as part of maintaining a standing army . For these reasons, paper currency was held in suspicion and hostility in Europe and America. It was also addictive since the speculative profits of trade and capital creation were quite large. Major nations established mints to print money and mint coins, and branches of their treasury to collect taxes and hold gold and silver stock. At that time, both silver and gold were considered
16168-644: The demand for paper notes to fall to zero. The printing of paper money was also associated with wars, and financing of wars, and therefore regarded as part of maintaining a standing army . For these reasons, paper currency was held in suspicion and hostility in Europe and America. It was also addictive since the speculative profits of trade and capital creation were quite large. Major nations established mints to print money and mint coins, and branches of their treasury to collect taxes and hold gold and silver stock. At this time both silver and gold were considered legal tender , and accepted by governments for taxes. However,
16340-449: The dollar to gold. After this many countries de-pegged their currencies from the U.S. dollar, and most of the world's currencies became unbacked by anything except the governments' fiat of legal tender and the ability to convert the money into goods via payment. According to proponents of modern money theory , fiat money is also backed by taxes. By imposing taxes, states create demand for the currency they issue. Heterodox In Money and
16512-582: The earliest uses of credit , cheques , savings accounts , transactional accounts , loaning, trusts , exchange rates , the transfer of credit and debt , and banking institutions for loans and deposits . In Europe, paper money was first introduced in Sweden in 1661. Sweden was rich in copper, thus, because of copper's low value, extraordinarily big coins (often weighing several kilograms) had to be made. The advantages of paper currency were numerous: it reduced transport of gold and silver, and thus lowered
16684-636: The early urbanization of the Near East during the Chalcolithic period (Copper Age). The emergence of written records from around 3000 BC also parallels Sumerian history, where slightly earlier records have been found. In the Old Elamite period ( Middle Bronze Age ), Elam consisted of kingdoms on the Iranian plateau , centered in Anshan , and from the mid-2nd millennium BC, it was centered in Susa in
16856-420: The early 12th century the government finally took over these shops to produce state-issued currency. Yet the banknotes issued were still regionally valid and temporary; it was not until the mid 13th century that a standard and uniform government issue of paper money was made into an acceptable nationwide currency. The already widespread methods of woodblock printing and then Pi Sheng 's movable type printing by
17028-506: The early 2000s. Early examples include Ecash , bit gold , RPOW , and b-money . Not much innovation occurred until the conception of Bitcoin in 2008, which introduced the concept of a decentralised currency that requires no trusted third party . When gold and silver were used as money, the money supply could grow only if the supply of these metals was increased by mining. This rate of increase would accelerate during periods of gold rushes and discoveries, such as when Columbus traveled to
17200-490: The efforts of inflationists . Governments at this point could use currency as an instrument of policy, printing paper currency such as the United States greenback , to pay for military expenditures. They could also set the terms at which they would redeem notes for specie, by limiting the amount of purchase, or the minimum amount that could be redeemed. By 1900, most of the industrializing nations were on some form of gold standard , with paper notes and silver coins constituting
17372-456: The employers. Modern token money , such as the tokens operated by local exchange trading systems (LETS), is a form of barter rather than being a true currency. The currency may be Internet-based and digital, for instance, Bitcoin is not tied to any specific country, or the IMF's SDR that is based on a basket of currencies (and assets held). Possession and sale of alternative forms of currencies
17544-574: The first two dynasties, those of Awan (or Avan ; c. 2400 – c. 2100 BC) and Simashki (c. 2100 – c. 1970 BC), are known from a list from Susa dating to the Old Babylonian period . Two Elamite dynasties said to have exercised brief control over parts of Sumer in very early times include Awan and Hamazi ; and likewise, several of the stronger Sumerian rulers, such as Eannatum of Lagash and Lugal-anne-mundu of Adab , are recorded as temporarily dominating Elam. The Awan dynasty (2350–2150 BC)
17716-421: The global capital inflows and outflows of countries around the world, and exchange rates will fluctuate accordingly. National policies The country's foreign trade, monetary and fiscal policies affect the exchange rate fluctuations. Foreign trade includes policies such as tariffs and import standards for commodity exports. The impact of monetary policy on the total amount and yield of money directly determines
17888-549: The government declares the fiat currency (typically notes and coins from a central bank, such as the Federal Reserve System in the U.S.) to be legal tender , making it unlawful not to accept the fiat currency as a means of repayment for all debts, public and private. Some bullion coins such as the Australian Gold Nugget and American Eagle are legal tender, however, they trade based on
18060-486: The highland area of Khuzestan. Disagreements over the location also exist in the Jewish historical sources says Daniel T. Potts. Some ancient sources draw a distinction between Elam as the highland area of Khuzestan, and Susiana as the lowland area. Yet in other ancient sources 'Elam' and 'Susiana' seem equivalent. The uncertainty in this area extends also to modern scholarship. Since the discovery of ancient Anshan , and
18232-401: The highlands. In prehistory, Elam was centered primarily in modern Khuzestān and Ilam . The name Khuzestān is derived ultimately from Old Persian : 𐎢𐎺𐎩 ( hūja ) meaning Susa/Elam. This became Middle Persian : 𐭧𐭥𐭰 ( hūz ) "Susiana", and in modern Persian : خوز ( xuz ), compounded with the toponymic suffix -stån "place". In geographical terms, Susiana basically represents
18404-633: The instrument being used as money. Many items have been used as commodity money such as naturally scarce precious metals , conch shells , barley , beads, etc., as well as many other things that are thought of as having value . Commodity money value comes from the commodity out of which it is made. The commodity itself constitutes the money, and the money is the commodity. Examples of commodities that have been used as mediums of exchange include gold, silver, copper, rice, Wampum , salt, peppercorns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, candy, etc. These items were sometimes used in
18576-549: The king of Qatna also sent two messengers to Elam. The Elamite rulers had become increasingly involved in Mesopotamian politics during the Sukkalmah dynasty . In fact, Rim-Sin of Larsa himself was of Elamite descent, notwithstanding his Akkadian name. Kudur-Nahhunte , who plundered the temples of southern Mesopotamia, the north being under the control of the Old Assyrian Empire . But Elamite influence in southern Mesopotamia did not last. Around 1760 BC, Hammurabi drove out
18748-633: The kingdom of Anzan and of Susa", at a time when the Achaemenid Persians were already ruling Anshan under Assyrian dominance. The various Assyrian Empires , which had been the dominant force in the Near East , Asia Minor , the Caucasus , North Africa , Arabian peninsula and East Mediterranean for much of the period from the first half of the 14th century BC, began to unravel after the death of Ashurbanipal in 631 BC, descending into
18920-468: The largest part of broad money in developed countries. In most countries, the majority of money is mostly created as M1/M2 by commercial banks making loans. Contrary to some popular misconceptions, banks do not act simply as intermediaries, lending out deposits that savers place with them, and do not depend on central bank money (M0) to create new loans and deposits. "Market liquidity" describes how easily an item can be traded for another item, or into
19092-467: The last Elamite to claim the old title "king of Anshan and Susa", was murdered by his brother Hallutash-Inshushinak I , who managed to briefly capture the Assyrian governor of Babylonia Ashur-nadin-shumi and the city of Babylon in 694 BC. Sennacherib soon responded by invading and ravaging Elam. Khallushu was in turn assassinated by Kutir-Nahhunte III , who succeeded him but soon abdicated in favor of Humban-numena III (692–689 BC). Khumma-Menanu recruited
19264-474: The last countries to break away from the gold standard was the United States in 1971. No country anywhere in the world today has an enforceable gold standard or silver standard currency system. Commercial bank money or demand deposits are claims against financial institutions that can be used for the purchase of goods and services. A demand deposit account is an account from which funds can be withdrawn at any time by check or cash withdrawal without giving
19436-467: The later Akkadian elamtu , and the Elamite haltamti. Elamite states were among the leading political forces of the Ancient Near East . In classical literature , Elam was also known as Susiana ( US : / ˌ s uː ʒ i ˈ æ n ə / UK : / ˌ s uː z i ˈ ɑː n ə / ; Ancient Greek : Σουσιανή Sousiānḗ ), a name derived from its capital Susa . Elam was part of
19608-649: The legislative or executive authority that creates it. Several countries can use the same name for their own separate currencies (for example, a dollar in Australia , Canada , and the United States ). By contrast, several countries can also use the same currency (for example, the euro or the CFA franc ), or one country can declare the currency of another country to be legal tender . For example, Panama and El Salvador have declared US currency to be legal tender, and from 1791 to 1857, Spanish dollars were legal tender in
19780-485: The life span of banknotes and reduces counterfeiting. The currency used is based on the concept of lex monetae ; that a sovereign state decides which currency it shall use. (See Fiat currency .) In 1978 the International Organization for Standardization published a system of three-digit alphabetic codes ( ISO 4217 ) to denote currencies. These codes are based on two initial letters allocated to
19952-411: The location where these figures were found indicates a date before or in the time of the Elamite king Shilhak-Inshushinak, stylistic features can help ground the figures in a specific time period. The hairstyle and costume of the figures which are strewn with dots and hemmed with short fringe at the bottom, and the precious metals point to a date in the latter part of the second millennium BC rather than to
20124-405: The lowlanders or the highlanders, Elam is not an Iranian term and has no relationship to the conception which the peoples of highland Iran had of themselves. They were Anshanites, Marhashians, Shimashkians, Zabshalians, Sherihumians, Awanites, etc. That Anshan played a leading role in the political affairs of the various highland groups inhabiting southwestern Iran is clear. But to argue that Anshan
20296-509: The market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. Money acts as a standard measure and a common denomination of trade. It is thus a basis for quoting and bargaining of prices. It is necessary for developing efficient accounting systems like double-entry bookkeeping . While standard of deferred payment
20468-651: The mass of something like 160 grains of barley . The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money —often, the shells of the cowry ( Cypraea moneta L. or C. annulus L. ). According to Herodotus , the Lydians were the first people to introduce the use of gold and silver coins . It is thought by modern scholars that these first stamped coins were minted around 650 to 600 BC. The system of commodity money eventually evolved into
20640-537: The military, and backing of state activities. Silver coins were used for midsized transactions, and as a unit of account for taxes, dues, contracts, and fealty, while copper coins represented the coinage of common transaction. This system had been used in ancient India since the time of the Mahajanapadas . In Europe, this system worked through the medieval period because there was virtually no new gold, silver, or copper introduced through mining or conquest. Thus
20812-406: The money can also define rules for its replacement in case of damage or destruction. For example, the U.S. government will replace mutilated Federal Reserve Notes (U.S. fiat money) if at least half of the physical note can be reconstructed, or if it can be otherwise proven to have been destroyed. By contrast, commodity money that has been lost or destroyed cannot be recovered. These factors led to
20984-459: The most valuable and were used for large purchases, payment of the military, and backing of state activities. Units of account were often defined as the value of a particular type of gold coin. Silver coins were used for midsized transactions, and sometimes also defined a unit of account, while coins of copper or silver, or some mixture of them (see debasement ), might be used for everyday transactions. This system had been used in ancient India since
21156-434: The national economy be in a normal and orderly state, that is, there is no serious inflation and economic overheating. In addition, the government should use macro policies to make mature adjustments to deal with the impact of currency exchange on the economy. The maintainability of international balance of payments is the main performance of reasonable economic structure. Currency convertibility not only causes difficulties in
21328-420: The need to transport gold and silver, which was risky; it facilitated loans of gold or silver at interest, since the underlying specie (money in the form of gold or silver coins rather than notes) never left the possession of the lender until someone else redeemed the note; and it allowed a division of currency into credit- and specie-backed forms. It enabled the sale of investment in joint-stock companies and
21500-448: The non-existence of the coincidence of wants. Having a medium of exchange can alleviate this issue because the former can have the freedom to spend time on other items, instead of being burdened to only serve the needs of the latter. Meanwhile, the latter can use the medium of exchange to seek for a party that can provide them with the item they want. A unit of account (in economics) is a standard numerical monetary unit of measurement of
21672-516: The nucleus of the Achaemenid dynasty . The Assyrians successfully subjugated and drove the Scythians and Cimmerians from their Iranian colonies, and the Persians , Medes and Parthians remained vassals of Assyria. A brief respite to the Elamites was provided by the civil war between Ashurbanipal and his own brother Shamash-shum-ukin , whom their father Esarhaddon had installed as
21844-427: The official coinage and currency of the United States. Commonly a central bank has the exclusive power to issue all forms of currency, including coins and banknotes ( fiat money ), and to restrain the circulation alternative currencies for its own area of circulation (a country or group of countries); it regulates the production of currency by banks ( credit ) through monetary policy . An exchange rate
22016-546: The only reason affecting the exchange rate. The large number of international tourists and overseas students has resulted in the flow of services and goods at home and abroad. It also represents that the competitiveness of global goods and services directly affects the change of international exchange rates. Capital flows National currencies will be traded on international markets for investment purposes. Investment opportunities in each country attract other countries into investment programs, so that these foreign currencies become
22188-413: The overall ratios of the three coinages remained roughly equivalent. In premodern China , the need for credit and for circulating a medium that was less of a burden than exchanging thousands of copper coins led to the introduction of paper money . This economic phenomenon was a slow and gradual process that took place from the late Tang dynasty (618–907) into the Song dynasty (960–1279). It began as
22360-438: The people living there a medium of exchange that they can use to exchange services and locally produced goods (in a broader sense, this is the original purpose of all money). Opponents of this concept argue that local currency creates a barrier that can interfere with economies of scale and comparative advantage and that in some cases they can serve as a means of tax evasion . Local currencies can also come into being when there
22532-527: The powerful Neo Assyrian Empire (911–605 BC); the Babylonian king Mar-biti-apla-ushur (984–979 BC) was of Elamite origin, and Elamites are recorded to have fought unsuccessfully with the Babylonian king Marduk-balassu-iqbi against the Assyrian forces under Shamshi-Adad V (823–811 BC). The later Neo-Elamite period is characterized by a significant migration of Indo-European speaking Iranians to
22704-416: The real value of debts may change due to inflation and deflation , and for sovereign and international debts via debasement and devaluation . To act as a store of value , money must be able to be reliably saved, stored, and retrieved—and be predictably usable as a medium of exchange when it is retrieved. The value of the money must also remain stable over time. Some have argued that inflation, by reducing
22876-472: The realization of its great importance in Elamite history, the definitions were changed again. Some modern scholars argued that the center of Elam lay at Anshan and in the highlands around it, and not at Susa in lowland Khuzistan. Potts disagrees suggesting that the term 'Elam' was primarily constructed by the Mesopotamians to describe the area in general terms, without referring specifically either to
23048-590: The recovery of Phoenician trade in the 10th and 9th centuries BC that led to a return to prosperity, and the appearance of real coinage, possibly first in Anatolia with Croesus of Lydia and subsequently with the Greeks and Persians. In Africa, many forms of value store have been used, including beads, ingots, ivory , various forms of weapons, livestock, the manilla currency , shell money , and ochre and other earth oxides. The manilla rings of West Africa were one of
23220-503: The redemption of those shares in a paper. But there were also disadvantages. First, since a note has no intrinsic value, there was nothing to stop issuing authorities from printing more notes than they had specie to back them with. Second, because this increased the money supply, it increased inflationary pressures, a fact observed by David Hume in the 18th century. Thus paper money would often lead to an inflationary bubble, which could collapse if people began demanding hard money, causing
23392-481: The regime of floating fiat currencies came into force. One of the last countries to break away from the gold standard was the United States in 1971, an action which was known as the Nixon shock . No country has an enforceable gold standard or silver standard currency system. A banknote or a bill is a type of currency and it is commonly used as legal tender in many jurisdictions. Together with coins , banknotes make up
23564-568: The region date to the Early Dynastic Period (Mesopotamia) I, and to Ur-III period c. 2900–2000 BC. These excavations include Kalleh Nisar, Bani Surmah, Chigha Sabz, Kamtarlan, Sardant, and Gulal-i Galbi. The Old Elamite period began around 2700 BC. Historical records mention the conquest of Elam by Enmebaragesi , the Sumerian king of Kish in Mesopotamia . Three dynasties ruled during this period. Twelve kings of each of
23736-427: The relative values of the different currencies. Currencies in this sense are either chosen by users or decreed by governments, and each type has limited boundaries of acceptance; i.e., legal tender laws may require a particular unit of account for payments to government agencies. Other definitions of the term currency appear in the respective synonymous articles: banknote , coin , and money . This article uses
23908-420: The reserves of the central banks of each country. The exchange rate mechanism, in which currencies are quoted continuously between countries, is based on foreign exchange markets in which currencies are invested by individuals and traded or speculated by central banks and investment institutions. In addition, changes in interest rates, capital market fluctuations and changes in investment opportunities will affect
24080-652: The rise of the Anshanite dynasties around 1500 BC. Their rule was characterized by an "Elamisation" of Susa, and the kings took the title "king of Anshan and Susa". While the first of these dynasties, the Kidinuids continued to use the Akkadian language frequently in their inscriptions, the succeeding Igihalkids and Shutrukids used Elamite with increasing regularity. Likewise, Elamite language and culture grew in importance in Susiana. The Kidinuids (c. 1500 – 1400 BC) are
24252-439: The risks; it made loaning gold or silver at interest easier since the specie (gold or silver) never left the possession of the lender until someone else redeemed the note; and it allowed for a division of currency into credit and specie backed forms. It enabled the sale of stock in joint stock companies , and the redemption of those shares in the paper. However, these advantages are held within their disadvantages. First, since
24424-417: The river Karun . It is considered to be the site of Proto-Elamite cultural formation. During its early history, it fluctuated between submission to Mesopotamian and Elamite power. The earliest levels (22–17 in the excavations conducted by Le Brun, 1978) exhibit pottery that has no equivalent in Mesopotamia, but for the succeeding period, the excavated material allows identification with the culture of Sumer of
24596-479: The same territory, in different eras (see Hanson, Encyclopædia Iranica). To this core Shushiana was periodically annexed and broken off. In addition, some Proto-Elamite sites are found well outside this area, spread out on the Iranian plateau ; such as Warakshe , Sialk (now a suburb of the modern city of Kashan ) and Jiroft in Kerman Province . The state of Elam was formed from these lesser states as
24768-437: The second part of the twentieth century allowed money to be represented digitally. By 1990, in the United States all money transferred between its central bank and commercial banks was in electronic form. By the 2000s most money existed as digital currency in bank databases. In 2012, by number of transaction, 20 to 58 percent of transactions were electronic (dependent on country). Anonymous digital currencies were developed in
24940-423: The shift of the store of value being the metal itself: at first silver, then both silver and gold, and at one point there was bronze as well. Now we have copper coins and other non-precious metals as coins. Metals were mined, weighed, and stamped into coins. This was to assure the individual taking the coin that he was getting a certain known weight of precious metal. Coins could be counterfeited, but they also created
25112-619: The southeast. It is not known what was used as a currency for these exchanges, but it is thought that oxhide-shaped ingots of copper, produced in Cyprus , may have functioned as a currency. It is thought that the increase in piracy and raiding associated with the Bronze Age collapse , possibly produced by the Peoples of the Sea , brought the trading system of oxhide ingots to an end. It was only
25284-439: The supply-demand relationship of different currencies determines the exchange ratio between currencies. Trade in goods and services Through cost transfer, goods and services circulating in the country (such as hotels, tourism, catering, advertising, household services) will indirectly affect the trade cost of goods and services and the price of export trade. Therefore, services and goods involved in international trade are not
25456-432: The sustainability of international balance of payments but also affects the government's direct control over international economic transactions. To eliminate the foreign exchange shortage, the government needs adequate international reserves. The level of exchange rate is an important factor in maintaining exchange rate stability, both before and after currency convertibility. The exchange rate of freely convertible currency
25628-472: The sword, Who have gone down uncircumcised to the lower parts of the earth, Who caused their terror in the land of the living; Now they bear their shame with those who go down to the Pit. ( Ezekiel 32:24) Their successors Khumma-Menanu and Shilhak-In-Shushinak II bore the simple title "king", and the final king Tempti-Khumma-In-Shushinak used no honorific at all. In 540 BC, Achaemenid rule began in Susa. Elymaïs
25800-534: The temples of Elam to naught; their gods and goddesses I scattered to the winds. The tombs of their ancient and recent kings I devastated, I exposed to the sun, and I carried away their bones toward the land of Ashur. I devastated the provinces of Elam and on their lands I sowed salt. The devastation was a little less complete than Ashurbanipal boasted, and a weak and fragmented Elamite rule was resurrected soon after with Shuttir-Nakhkhunte, son of Humban-umena III (not to be confused with Shuttir-Nakhkhunte, son of Indada,
25972-464: The throne of Larsa, and Warad-Sin's brother, Rim-Sin , succeeded him and conquered much of southern Mesopotamia for Larsa . Notable Eparti dynasty rulers in Elam during this time include Suruhduh/Siruk-tuh/Sirukdukh (c. 1850 BC), who entered various military coalitions to contain the power of the south Mesopotamian states. Siruk-tuh was the king of Elam when Hammurabi first ruled, he and later kings of
26144-530: The time of the Mahajanapadas . The exact ratios between the values of the three metals varied greatly between different eras and places; for example, the opening of silver mines in the Harz mountains of central Europe made silver relatively less valuable, as did the flood of New World silver after the Spanish conquests . However, the rarity of gold consistently made it more valuable than silver, and likewise silver
26316-425: The value of money, diminishes the ability of the money to function as a store of value. The functions of money are that it is a medium of exchange, a unit of account, and a store of value. To fulfill these various functions, money must be: In economics, money is any financial instrument that can fulfill the functions of money (detailed above). These financial instruments together are collectively referred to as
26488-727: The vassal king of Babylon. The Elamites gave support to Shamash-shum-ukin, but also engaged in fighting among themselves. Babylon was besieged in midsummer of 650 BC, and fell by 648 BC; Shamash-shum-ukin died in a fire. The Elamite kingdom was greatly weakened by rebellions and civil wars; kings from 651 to 640 had short reigns before being usurped, overthrown, or captured by the Assyrians. Having dealt with his brother, Ashurbanipal sensed an opportunity to devastate Elam. In 646 BC Ashurbanipal devastated Susiana with ease, and sacked Susa. He installed several vassal kings such as Tammaritu , although these quickly broke off relations with Assyria over their pillages. The last Elamite king, Humban-Haltash III ,
26660-786: The very latest, had conquered its vast empire which stretched from the Caucasus Mountains to Egypt , Libya and the Arabian Peninsula , and from Cyprus and Ephesus to Persia and the Caspian Sea . The major cities in Assyria itself were gradually taken; Arrapha (modern Kirkuk ) and Kalhu (modern Nimrud ) in 616 BC, Ashur , Dur-Sharrukin and Arbela (modern Erbil ) in 613, Nineveh falling in 612, Harran in 608 BC, Carchemish in 605 BC, and finally Dur-Katlimmu by 599 BC. Elam, already largely destroyed and subjugated by Assyria, thus became easy prey for
26832-399: The world followed Gresham's law : keeping gold and silver paid but paying out in notes. This did not happen all around the world at the same time, but occurred sporadically, generally in times of war or financial crisis, beginning in the early part of the 20th century and continuing across the world until the late 20th century, when the regime of floating fiat currencies came into force. One of
27004-399: The world, local currency can be converted to another currency or vice versa with or without central bank/government intervention. Such conversions take place in the foreign exchange market . Based on the above restrictions or free and readily conversion features, currencies are classified as: According to the three aspects of trade in goods and services , capital flows and national policies,
27176-663: Was a form of receipt, representing grain stored in temple granaries in Sumer in ancient Mesopotamia and in Ancient Egypt . In this first stage of currency, metals were used as symbols to represent value stored in the form of commodities. This formed the basis of trade in the Fertile Crescent for over 1500 years. However, the collapse of the Near Eastern trading system pointed to a flaw: in an era where there
27348-638: Was also being ravaged by the empire of Assyria during this period), and at the same time were exhibiting vigorous construction activity—building and restoring luxurious temples in Susa and across their Empire. Shutruk-Nakhkhunte raided Babylonia, carrying home to Susa trophies like the statues of Marduk and Manishtushu , the Manishtushu Obelisk , the Stele of Hammurabi and the stele of Naram-Sin . In 1158 BC, after much of Babylonia had been annexed by Ashur-Dan I of Assyria and Shutruk-Nakhkhunte,
27520-466: Was captured in 640 BC by Ashurbanipal, who annexed and destroyed the country. In a tablet unearthed in 1854 by Austen Henry Layard , Ashurbanipal boasts of the destruction he had wrought: Susa, the great holy city, abode of their Gods, seat of their mysteries, I conquered. I entered its palaces, I opened their treasuries where silver and gold, goods and wealth were amassed ... I destroyed the ziggurat of Susa. I smashed its shining copper horns. I reduced
27692-559: Was consistently worth more than copper. In premodern China , the need for lending and for a medium of exchange that was less physically cumbersome than large numbers of copper coins led to the introduction of paper money , i.e. banknotes . Their introduction was a gradual process that lasted from the late Tang dynasty (618–907) into the Song dynasty (960–1279). It began as a means for merchants to exchange heavy coinage for receipts of deposit issued as promissory notes by wholesalers ' shops. These notes were valid for temporary use in
27864-476: Was created during the 7th–12th centuries on the basis of the expanding levels of circulation of a stable high-value currency (the dinar ). Innovations introduced by Muslim economists, traders and merchants include the earliest uses of credit , cheques , promissory notes , savings accounts , transaction accounts , loaning , trusts , exchange rates , the transfer of credit and debt , and banking institutions for loans and deposits . In Europe, paper currency
28036-482: Was discouraged. By the beginning of the 20th century, almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold. After World War II and the Bretton Woods Conference , most countries adopted fiat currencies that were fixed to the U.S. dollar . The U.S. dollar was in turn fixed to gold. In 1971 the U.S. government suspended the convertibility of
28208-480: Was first introduced on a regular basis in Sweden in 1661 (although Washington Irving records an earlier emergency use of it, by the Spanish in a siege during the Conquest of Granada ). As Sweden was rich in copper, many copper coins were in circulation, but its relatively low value necessitated extraordinarily big coins, often weighing several kilograms. The advantages of paper currency were numerous: it reduced
28380-405: Was historically an emergent market phenomenon that possessed intrinsic value as a commodity ; nearly all contemporary money systems are based on unbacked fiat money without use value . Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender ; that is, it must be accepted as a form of payment within the boundaries of
28552-507: Was no place that was safe to store value, the value of a circulating medium could only be as sound as the forces that defended that store. A trade could only reach as far as the credibility of that military. By the late Bronze Age , however, a series of treaties had established safe passage for merchants around the Eastern Mediterranean , spreading from Minoan Crete and Mycenae in the northwest to Elam and Bahrain in
28724-423: Was not until the mid 13th century that a standard and uniform government issue of paper money became an acceptable nationwide currency. The already widespread methods of woodblock printing and then Bi Sheng 's movable type printing by the 11th century were the impetus for the mass production of paper money in premodern China. At around the same time in the medieval Islamic world , a vigorous monetary economy
28896-702: Was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located. The name "Juno" may have derived from the Etruscan goddess Uni and "Moneta" either from the Latin word "monere" (remind, warn, or instruct) or the Greek word "moneres" (alone, unique). In the Western world a prevalent term for coin-money has been specie , stemming from Latin in specie , meaning "in kind". The use of barter -like methods may date back to at least 100,000 years ago, though there
29068-479: Was partly contemporary with that of the Mesopotamian emperor Sargon of Akkad , who not only defeated the Awan king Luh-ishan and subjected Susa , but attempted to make the East Semitic Akkadian the official language there. From this time, Mesopotamian sources concerning Elam become more frequent, since the Mesopotamians had developed an interest in resources (such as wood, stone, and metal) from
29240-410: Was routed by Sargon's troops during an expedition in 710, and another Elamite defeat by Sargon's troops is recorded for 708. The Assyrian dominion over Babylon was underlined by Sargon's son Sennacherib , who defeated the Elamites, Chaldeans and Babylonians and dethroned Merodach-baladan for a second time, installing his own son Ashur-nadin-shumi on the Babylonian throne in 700. Shutruk-Nakhkhunte II,
29412-666: Was the location of the death of Antiochus III the Great who was killed while pillaging a temple of Bel in 187 BC. Following the rise and fall of the Achaemenid Empire and the Seleucid Empire , a new dynasty of Elamite rulers established Elymais from 147 BC to 224 AD, usually under the suzerainty of the Parthian Empire , until the advent of the unified Sasanian Empire in 224 AD. Dated to approximately
29584-633: Was to assure the individual accepting the coin that he was getting a certain known weight of precious metal. Coins could be counterfeited, but the existence of standard coins also created a new unit of account , which helped lead to banking . Archimedes' principle provided the next link: coins could now be easily tested for their fine weight of the metal, and thus the value of a coin could be determined, even if it had been shaved, debased or otherwise tampered with (see Numismatics ). Most major economies using coinage had several tiers of coins of different values, made of copper, silver, and gold. Gold coins were
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