Essay about The Modernization Of Money And Interest

2364 Words Oct 4th, 2016 10 Pages
Introduction:
The functionality of interest is developed by the evolution of money, an idea that in fact appeared later than interest. The modernization of money and interest never takes a smooth path: sometimes it breeds financial prosperity, but the next time it may bring catastrophe. As with fire, economists and policymakers throughout the financial history keep monitoring and intervening in money and interest, trying to grasp these tools but not get hurt: governments interpret underlying signals sent by interest and implement monetary policies to boost economies and avoid aberrations.
Past failures in financial history have proved that current understandings of money and interest need further adjustments. Therefore, how do money, interest rates, and financial system really interact with each other? To answer that question, people had better delve back into history and exhume new remains from those ruins. This research is intended to make some contributions: the very financial environments require the abstraction of money, and that development provokes revolutions in the nature of money and in the expression of interest, leading to stronger economic vitality and more severe endogenous threats.
The Birth: Calves as Interest
During the time of Mesopotamian civilization, people usually borrowed and lent agriculture factors to each other as a means of supporting their own production or surviving unexpected disasters. However, the repayment was often accompanied by an extra…

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