112-599: A prize is an award to be given to a person or a group of people (such as sporting teams and organizations) to recognize and reward their actions and achievements. Official prizes often involve monetary rewards as well as the fame that comes with them. Some prizes are also associated with extravagant awarding ceremonies, such as the Academy Awards . Prizes are also given to publicize noteworthy or exemplary behaviour, and to provide incentives for improved outcomes and competitive efforts. In general, prizes are regarded in
224-427: 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
336-459: 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
448-608: A century when gold and paper money backed by gold were used as money in the 18th and 19th centuries. Mesopotamia Mesopotamia is a historical region of West Asia situated within the Tigris–Euphrates river system , in the northern part of the Fertile Crescent . Today, Mesopotamia is known as present-day Iraq . In the broader sense, the historical region of Mesopotamia also includes parts of present-day Iran , Turkey , Syria and Kuwait . Mesopotamia
560-426: A complicated and extensive syllabary. A considerable amount of Babylonian literature was translated from Sumerian originals, and the language of religion and law long continued to be the old agglutinative language of Sumer. Vocabularies, grammars, and interlinear translations were compiled for the use of students, as well as commentaries on the older texts and explanations of obscure words and phrases. The characters of
672-444: 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,
784-415: 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
896-635: A language of the Zagros possibly related to the Hurro-Urartuan language family , is attested in personal names, rivers and mountains and in various crafts. Akkadian came to be the dominant language during the Akkadian Empire and the Assyrian empires, but Sumerian was retained for administrative, religious, literary and scientific purposes. Different varieties of Akkadian were used until
1008-473: 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
1120-487: 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
1232-455: 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
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#17327807797811344-418: 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
1456-423: 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 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
1568-488: A patient could not be cured physically, the Babylonian physicians often relied on exorcism to cleanse the patient from any curses . Esagil-kin-apli's Diagnostic Handbook was based on a logical set of axioms and assumptions, including the modern view that through the examination and inspection of the symptoms of a patient, it is possible to determine the patient's disease , its aetiology, its future development, and
1680-420: A positive light, and their winners are admired. However, many prizes, especially the more famous ones, have often caused controversy and jealousy. Specific types of prizes include: [REDACTED] Media related to Prizes at Wikimedia Commons 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
1792-554: A precursor to the Socratic method . The Ionian philosopher Thales was influenced by Babylonian cosmological ideas. Ancient Mesopotamians had ceremonies each month. The theme of the rituals and festivals for each month was determined by at least six important factors: Some songs were written for the gods but many were written to describe important events. Although music and songs amused kings , they were also enjoyed by ordinary people who liked to sing and dance in their homes or in
1904-761: A recent hypothesis, the Archimedes' screw may have been used by Sennacherib, King of Assyria, for the water systems at the Hanging Gardens of Babylon and Nineveh in the 7th century BC, although mainstream scholarship holds it to be a Greek invention of later times. Later, during the Parthian or Sasanian periods, the Baghdad Battery , which may have been the world's first battery, was created in Mesopotamia. The Ancient Mesopotamian religion
2016-567: A sacred, ceremonial, literary, and scientific language in Mesopotamia until the 1st century AD. Libraries were extant in towns and temples during the Babylonian Empire. An old Sumerian proverb averred that "he who would excel in the school of the scribes must rise with the dawn." Women as well as men learned to read and write, and for the Semitic Babylonians, this involved knowledge of the extinct Sumerian language, and
2128-400: 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
2240-508: 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
2352-415: A table of Pythagorean triples and represents some of the most advanced mathematics prior to Greek mathematics. From Sumerian times, temple priesthoods had attempted to associate current events with certain positions of the planets and stars. This continued to Assyrian times, when Limmu lists were created as a year by year association of events with planetary positions, which, when they have survived to
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#17327807797812464-411: 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
2576-519: A vast mountainous region. Overland routes in Mesopotamia usually follow the Euphrates because the banks of the Tigris are frequently steep and difficult. The climate of the region is semi-arid with a vast desert expanse in the north which gives way to a 15,000-square-kilometre (5,800 sq mi) region of marshes, lagoons, mudflats, and reed banks in the south. In the extreme south, the Euphrates and
2688-595: Is an-ki , which refers to the god An and the goddess Ki . Their son was Enlil, the air god. They believed that Enlil was the most powerful god. He was the chief god of the pantheon . The numerous civilizations of the area influenced the Abrahamic religions , especially the Hebrew Bible . Its cultural values and literary influence are especially evident in the Book of Genesis . Giorgio Buccellati believes that
2800-414: Is a composite product, although it is probable that some of the stories are artificially attached to the central figure. Mesopotamian mathematics and science was based on a sexagesimal (base 60) numeral system . This is the source of the 60-minute hour, the 24-hour day, and the 360- degree circle. The Sumerian calendar was lunisolar, with three seven-day weeks of a lunar month. This form of mathematics
2912-469: Is accurate to about six decimal digits, and is the closest possible three-place sexagesimal representation of √ 2 : The Babylonians were not interested in exact solutions, but rather approximations, and so they would commonly use linear interpolation to approximate intermediate values. One of the most famous tablets is the Plimpton 322 tablet , created around 1900–1600 BC, which gives
3024-404: 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)
3136-597: Is compatible with ergodic axioms. Logic was employed to some extent in Babylonian astronomy and medicine. Babylonian thought had a considerable influence on early Ancient Greek and Hellenistic philosophy . In particular, the Babylonian text Dialogue of Pessimism contains similarities to the agonistic thought of the Sophists , the Heraclitean doctrine of dialectic , and the dialogs of Plato , as well as
3248-492: 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 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
3360-429: 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,
3472-403: 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,
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3584-484: 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
3696-476: Is the site of the earliest developments of the Neolithic Revolution from around 10,000 BC. It has been identified as having "inspired some of the most important developments in human history, including the invention of the wheel , the planting of the first cereal crops , the development of cursive script, mathematics , astronomy , and agriculture ". It is recognised as the cradle of some of
3808-421: Is uncertain. The Babylonian development of methods for predicting the motions of the planets is considered to be a major episode in the history of astronomy . The only Greek-Babylonian astronomer known to have supported a heliocentric model of planetary motion was Seleucus of Seleucia (b. 190 BC). Seleucus is known from the writings of Plutarch . He supported Aristarchus of Samos' heliocentric theory where
3920-561: The Akkadian Empire . The early second millennium BC saw the polarization of Mesopotamian society into Assyria in the north and Babylonia in the south. From 900 to 612 BC, the Neo-Assyrian Empire asserted control over much of the ancient Near East. Subsequently, the Babylonians, who had long been overshadowed by Assyria, seized power , dominating the region for a century as the final independent Mesopotamian realm until
4032-674: The Earth rotated around its own axis which in turn revolved around the Sun . According to Plutarch , Seleucus even proved the heliocentric system, but it is not known what arguments he used, except that he correctly theorized on tides as a result of the Moon's attraction. Babylonian astronomy served as the basis for much of Greek , classical Indian , Sassanian, Byzantine , Syrian , medieval Islamic , Central Asian , and Western European astronomy. The oldest Babylonian texts on medicine date back to
4144-613: The Jazira , is the area between the Euphrates and the Tigris from their sources down to Baghdad . Lower Mesopotamia is the area from Baghdad to the Persian Gulf and includes Kuwait and parts of western Iran. In modern academic usage, the term Mesopotamia often also has a chronological connotation. It is usually used to designate the area until the Muslim conquests , with names like Syria , Jazira , and Iraq being used to describe
4256-521: 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
4368-650: The Old Babylonian period in the first half of the 2nd millennium BC . The most extensive Babylonian medical text, however, is the Diagnostic Handbook written by the ummânū , or chief scholar, Esagil-kin-apli of Borsippa , during the reign of the Babylonian king Adad-apla-iddina (1069–1046 BC). Along with contemporary Egyptian medicine , the Babylonians introduced the concepts of diagnosis , prognosis , physical examination , enemas , and prescriptions . The Diagnostic Handbook introduced
4480-414: 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
4592-451: 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
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4704-404: 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
4816-438: The marketplaces . Songs were sung to children who passed them on to their children. Thus songs were passed on through many generations as an oral tradition until writing was more universal. These songs provided a means of passing on through the centuries highly important information about historical events. Hunting was popular among Assyrian kings. Boxing and wrestling feature frequently in art, and some form of polo
4928-416: 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
5040-407: The É , a temple dedicated to the goddess Inanna at Uruk, from a building labeled as Temple C by its excavators. The early logographic system of cuneiform script took many years to master. Thus, only a limited number of individuals were hired as scribes to be trained in its use. It was not until the widespread use of a syllabic script was adopted under Sargon's rule that significant portions of
5152-701: The (two) rivers") comes from the ancient Greek root words μέσος ( mesos , 'middle') and ποταμός ( potamos , 'river') and translates to '(land) between rivers', likely being a calque of the older Aramaic term, with the Aramaic term itself likely being a calque of the Akkadian birit narim . It is used throughout the Greek Septuagint ( c. 250 BC ) to translate the Hebrew and Aramaic equivalent Naharaim . An even earlier Greek usage of
5264-465: 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
5376-432: The 1st century BC and 3rd century AD, including Adiabene , Osroene , and Hatra . The regional toponym Mesopotamia ( / ˌ m ɛ s ə p ə ˈ t eɪ m i ə / , Ancient Greek : Μεσοποταμία '[land] between rivers'; Arabic : بِلَاد ٱلرَّافِدَيْن Bilād ar-Rāfidayn or بَيْن ٱلنَّهْرَيْن Bayn an-Nahrayn ; Persian : میانرودان miyân rudân ; Syriac : ܒܝܬ ܢܗܪ̈ܝܢ Beth Nahrain "(land) between
5488-576: 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
5600-540: The 8,000-year-old remains of early farmers found at an ancient graveyard in Germany . They compared the genetic signatures to those of modern populations and found similarities with the DNA of people living in today's Turkey and Iraq . The earliest language written in Mesopotamia was Sumerian , an agglutinative language isolate . Along with Sumerian, Semitic languages were also spoken in early Mesopotamia. Subartuan ,
5712-517: 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
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#17327807797815824-565: 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
5936-537: 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 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
6048-557: 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 is no evidence of a society or economy that relied primarily on barter. Instead, non-monetary societies operated largely along
6160-626: 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
6272-473: The Mesopotamian population became literate. Massive archives of texts were recovered from the archaeological contexts of Old Babylonian scribal schools, through which literacy was disseminated. Akkadian gradually replaced Sumerian as the spoken language of Mesopotamia somewhere around the turn of the 3rd and the 2nd millennium BC. The exact dating being a matter of debate. Sumerian continued to be used as
6384-472: The Tigris unite and empty into the Persian Gulf . The arid environment ranges from the northern areas of rain-fed agriculture to the south where irrigation of agriculture is essential. This irrigation is aided by a high water table and by melting snows from the high peaks of the northern Zagros Mountains and from the Armenian Highlands, the source of the Tigris and Euphrates Rivers that give
6496-570: The ancient history of lower Mesopotamia—commenced in the early-third millennium BC with cuneiform records of early dynastic kings. This entire history ends with either the arrival of the Achaemenid Empire in the late 6th century BC or with the Muslim conquest and the establishment of the Caliphate in the late 7th century AD, from which point the region came to be known as Iraq . In the long span of this period, Mesopotamia housed some of
6608-461: 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
6720-431: 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
6832-410: The chances of the patient's recovery. Esagil-kin-apli discovered a variety of illnesses and diseases and described their symptoms in his Diagnostic Handbook . These include the symptoms for many varieties of epilepsy and related ailments along with their diagnosis and prognosis. Some treatments used were likely based off the known characteristics of the ingredients used. The others were based on
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#17327807797816944-729: The city of Eridu , the Akkadian kingdoms, the Third Dynasty of Ur , and the various Assyrian empires. Some of the important historical Mesopotamian leaders were Ur-Nammu (king of Ur), Sargon of Akkad (who established the Akkadian Empire), Hammurabi (who established the Old Babylonian state), Ashur-uballit I and Tiglath-Pileser I (who established the Assyrian Empire). Scientists analysed DNA from
7056-420: 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
7168-558: 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
7280-414: 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
7392-614: The cultural mix. Periodic breakdowns in the cultural system have occurred for a number of reasons. The demands for labor has from time to time led to population increases that push the limits of the ecological carrying capacity , and should a period of climatic instability ensue, collapsing central government and declining populations can occur. Alternatively, military vulnerability to invasion from marginal hill tribes or nomadic pastoralists has led to periods of trade collapse and neglect of irrigation systems. Equally, centripetal tendencies amongst city-states have meant that central authority over
7504-421: The cycles of the moon. They divided the year into two seasons: summer and winter. The origins of astronomy as well as astrology date from this time. During the 8th and 7th centuries BC, Babylonian astronomers developed a new approach to astronomy. They began studying philosophy dealing with the ideal nature of the early universe and began employing an internal logic within their predictive planetary systems. This
7616-644: 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,
7728-449: 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
7840-582: 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
7952-420: 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
8064-506: 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
8176-783: The eastern regions of Mesopotamia fell to the Sassanid Persians . The division of the region between the Roman Byzantine Empire from 395 AD and the Sassanid Empire lasted until the 7th century Muslim conquest of Persia of the Sasanian Empire and the Muslim conquest of the Levant from the Byzantines. A number of primarily neo-Assyrian and Christian native Mesopotamian states existed between
8288-478: The end of the Neo-Babylonian period. Old Aramaic , which had already become common in Mesopotamia, then became the official provincial administration language of first the Neo-Assyrian Empire , and then the Achaemenid Empire : the official lect is called Imperial Aramaic . Akkadian fell into disuse, but both it and Sumerian were still used in temples for some centuries. The last Akkadian texts date from
8400-549: 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
8512-633: 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
8624-468: 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
8736-537: 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
8848-465: The late 1st century AD. Early in Mesopotamia's history, around the mid-4th millennium BC, cuneiform was invented for the Sumerian language. Cuneiform literally means "wedge-shaped", due to the triangular tip of the stylus used for impressing signs on wet clay. The standardized form of each cuneiform sign appears to have been developed from pictograms . The earliest texts, 7 archaic tablets, come from
8960-509: 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
9072-472: The methods of therapy and aetiology and the use of empiricism , logic , and rationality in diagnosis, prognosis and therapy. The text contains a list of medical symptoms and often detailed empirical observations along with logical rules used in combining observed symptoms on the body of a patient with its diagnosis and prognosis. The symptoms and diseases of a patient were treated through therapeutic means such as bandages , creams and pills . If
9184-537: 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
9296-670: The modern era. In 539 BC, Mesopotamia was conquered by the Achaemenid Empire . The area was next conquered by Alexander the Great in 332 BC. After his death, it became part of the Greek Seleucid Empire . Around 150 BC, Mesopotamia was under the control of the Parthian Empire . It became a battleground between the Romans and Parthians, with western parts of the region coming under ephemeral Roman control. In 226 AD,
9408-406: 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
9520-530: The name Mesopotamia is evident from The Anabasis of Alexander , which was written in the late 2nd century AD but specifically refers to sources from the time of Alexander the Great . In the Anabasis , Mesopotamia was used to designate the land east of the Euphrates in north Syria . The Akkadian term biritum/birit narim corresponded to a similar geographical concept. Later, the term Mesopotamia
9632-448: 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
9744-420: The origins of philosophy can be traced back to early Mesopotamian wisdom , which embodied certain philosophies of life, particularly ethics , in the forms of dialectic , dialogues , epic poetry , folklore , hymns , lyrics , prose works, and proverbs . Babylonian reason and rationality developed beyond empirical observation. Babylonian thought was also based on an open-systems ontology which
9856-413: 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
9968-407: 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 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
10080-402: The present day, allow accurate associations of relative with absolute dating for establishing the history of Mesopotamia. The Babylonian astronomers were very adept at mathematics and could predict eclipses and solstices . Scholars thought that everything had some purpose in astronomy. Most of these related to religion and omens. Mesopotamian astronomers worked out a 12-month calendar based on
10192-429: 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 the mass of something like 160 grains of barley . The first usage of the term came from Mesopotamia circa 3000 BC. Societies in
10304-416: 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
10416-425: The region after that date. It has been argued that these later euphemisms are Eurocentric terms attributed to the region in the midst of various 19th-century Western encroachments. Mesopotamia encompasses the land between the Euphrates and Tigris rivers, both of which have their headwaters in the neighboring Armenian highlands . Both rivers are fed by numerous tributaries, and the entire river system drains
10528-441: The region its name. The usefulness of irrigation depends upon the ability to mobilize sufficient labor for the construction and maintenance of canals, and this, from the earliest period, has assisted the development of urban settlements and centralized systems of political authority. Agriculture throughout the region has been supplemented by nomadic pastoralism, where tent-dwelling nomads herded sheep and goats (and later camels) from
10640-439: 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
10752-461: The river pastures in the dry summer months, out into seasonal grazing lands on the desert fringe in the wet winter season. The area is generally lacking in building stone, precious metals, and timber, and so historically has relied upon long-distance trade of agricultural products to secure these items from outlying areas. In the marshlands to the south of the area, a complex water-borne fishing culture has existed since prehistoric times and has added to
10864-437: 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
10976-423: 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
11088-538: The syllabary were all arranged and named, and elaborate lists were drawn up. Many Babylonian literary works are still studied today. One of the most famous of these was the Epic of Gilgamesh , in twelve books, translated from the original Sumerian by a certain Sîn-lēqi-unninni , and arranged upon an astronomical principle. Each division contains the story of a single adventure in the career of Gilgamesh . The whole story
11200-550: The symbolic qualities. Mesopotamian people invented many technologies including metal and copper-working, glass and lamp making, textile weaving, flood control , water storage, and irrigation. They were also one of the first Bronze Age societies in the world. They developed from copper, bronze, and gold on to iron. Palaces were decorated with hundreds of kilograms of these very expensive metals. Also, copper, bronze, and iron were used for armor as well as for different weapons such as swords, daggers, spears, and maces . According to
11312-425: 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
11424-418: The volume of the frustum of a cone or a square pyramid was incorrectly taken as the product of the height and half the sum of the bases. Also, there was a recent discovery in which a tablet used π as 25/8 (3.125 instead of 3.14159~). The Babylonians are also known for the Babylonian mile, which was a measure of distance equal to about seven modern miles (11 km). This measurement for distances eventually
11536-704: The whole region, when imposed, has tended to be ephemeral, and localism has fragmented power into tribal or smaller regional units. These trends have continued to the present day in Iraq. The prehistory of the Ancient Near East begins in the Lower Paleolithic period. Therein, writing emerged with a pictographic script, Proto-cuneiform , in the Uruk IV period ( c. late 4th millennium BC ). The documented record of actual historical events—and
11648-399: 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
11760-427: The world's earliest civilizations. The Sumerians and Akkadians , each originating from different areas, dominated Mesopotamia from the beginning of recorded history ( c. 3100 BC ) to the fall of Babylon in 539 BC. The rise of empires, beginning with Sargon of Akkad around 2350 BC, characterized the subsequent 2,000 years of Mesopotamian history, marked by the succession of kingdoms and empires such as
11872-812: The world's most ancient highly developed, and socially complex states. The region was one of the four riverine civilizations where writing was invented, along with the Nile valley in Ancient Egypt , the Indus Valley civilization in the Indian subcontinent , and the Yellow River in Ancient China . Mesopotamia housed historically important cities such as Uruk , Nippur , Nineveh , Assur and Babylon , as well as major territorial states such as
11984-430: Was an important contribution to astronomy and the philosophy of science and some scholars have thus referred to this new approach as the first scientific revolution. This new approach to astronomy was adopted and further developed in Greek and Hellenistic astronomy. In Seleucid and Parthian times, the astronomical reports were thoroughly scientific. How much earlier their advanced knowledge and methods were developed
12096-500: Was converted to a time-mile used for measuring the travel of the Sun, therefore, representing time. The roots of algebra can be traced to the ancient Babylonia who developed an advanced arithmetical system with which they were able to do calculations in an algorithmic fashion. The Babylonian clay tablet YBC 7289 ( c. 1800 –1600 BC) gives an approximation of √ 2 in four sexagesimal figures, 1 24 51 10 , which
12208-482: 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
12320-412: Was instrumental in early map-making . The Babylonians also had theorems on how to measure the area of several shapes and solids. They measured the circumference of a circle as three times the diameter and the area as one-twelfth the square of the circumference, which would be correct if π were fixed at 3. The volume of a cylinder was taken as the product of the area of the base and the height; however,
12432-630: Was more generally applied to all the lands between the Euphrates and the Tigris , thereby incorporating not only parts of Syria but also almost all of Iraq and southeastern Turkey . The neighbouring steppes to the west of the Euphrates and the western part of the Zagros Mountains are also often included under the wider term Mesopotamia . A further distinction is usually made between Northern or Upper Mesopotamia and Southern or Lower Mesopotamia . Upper Mesopotamia, also known as
12544-450: Was the first recorded. Mesopotamians believed that the world was a flat disc, surrounded by a huge, holed space, and above that, heaven . They believed that water was everywhere, the top, bottom and sides, and that the universe was born from this enormous sea. Mesopotamian religion was polytheistic . Although the beliefs described above were held in common among Mesopotamians, there were regional variations. The Sumerian word for universe
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