Strengths And Weaknesses Of Modern Money System

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We live in an ever-changing society, thus a traditional money system cannot be relied upon to hold our economy. The Industrial age in the early 18th century drastically changed everything, through the rise of factories and development of commercial goods, currencies based on commodity became unnecessary for many reasons. Correspondingly, due to the innovative and highly tech forward society of today, more than ever, has it become a need to have a money system that is regulated by a central authority. Metallism, the old school money system, cannot be the foundation of the world’s future money system, as it doesn’t meet and set the requirements of the ever-changing modern economy.

Development in technology has greatly changed the importance
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It leads to more barter exchanges as more people have the opportunity to use money. It provides and establishes a trust of fair payment and price for money. Through the authorization of a central system like a government, it has helped unite people. Chartalism’s major advantage is also it’s major weakness, as the chartalism money system cannot exist without a central system or higher authority. Countries facing wars or revolutions, have to use foreign currency when their own currency is deemed unreliable and corrupted. For instance, when Zimbabwe faced hyperinflation after the Second Congo War, they had no choice but to adopt a foreign currency such as the US dollar. To date, the US dollar is the most widely traded within Zimbabwe for commerce (Hanke 2008). Consequently, Zimbabwe blamed its financial situation to the economic sanctions given by the USA. This also shows the imperialistic nature of money, how one country benefits when their currency is used …show more content…
We have to acknowledge and understand the nature of our society, in order to make a better decision. The internet and social media have vastly brought people together and united the world. We need a money system that complements and works with the direction our society is taking. We already have central governments watching our every move, it 's more beneficial for them to regulate the money system as it provides authenticity, security and reliability for barter at the least. Even though, central authority will be in both metallism and chartalism but in chartalism, we have the choice to pick our future leaders and decide our future from

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