, Additional Genaral Maner (Retd.), Gujarat State Fertilizers and Chemicals Ltd. (GSFC), Vadodara, Gujarat, India
It is the most common notion with us that day by day purchasing power of our currency reduces on time line. It is a fact also. We find views and debate on the issue “Why and how it is so?” I also contemplated on it and I have tried to put my observations and out comes while pondering on the issue. On one part, it is tried to peep into the fetus of the money. On other side, it is tried to locate the foundation of money that determines the reliance of its purchasing power. The influence of parameters that determines the exchange ratio in any exchange process between commodity and money is also considered. It is revealed that human characteristics and overall health of social systems, efficient functioning of social institutions and ethical as well as moral values of members of the society projects grass root influence on determining the exchange value of money for any nation. It is to be noted that money has never a value, but it is evolved with human society where it has exchange value and an exchange value is never a value.
Keywords: barter in promise, SP1, SP2, precious coins, supporting pillar.
JEL Classification: A13, A14, B21, F43, F50, I24, O12, P16, P26, P48, Z13.
Cite as: Dave H. (2017). Simple annals of Money. Financial Markets, Institutions and Risks, 1(4), 53-64. DOI: 10.21272/fmir.1(4).53-64.2017
Forwarded by Peter G. Klein. Reprinted. Chapter-VIII Theory of Money, 257-280.
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