PhD, Department of Economics, Auburn University, USA
This article examines the special case of rice in different parts of the World, as it was used for an additional purpose, besides providing for nutritional needs of people. When confidence in a system of currency with coins is present, this more conventional form of money takes precedence. A respected economic form of currency which may include paper and coins or accounts thereof, has all three elements of money: a medium of exchange, a store of value and as a unit of account. In this article, the concept of value includes subjective value, what people have in terms of pleasure and displeasure in regard to owning and seeing a particular object. This article shows that rice satisfied the three requirements for serving as a form of money, at some time periods and in some areas of the World. It has been found that rice met the three criteria necessary for them to be a type of money, in history in different countries. Some examples include certain past time periods in parts of Indonesia, Greece, North America, Japan, and some other places. Although rice was later found to not work as well, compared to some other specific forms of money. Understanding how different forms of money appear and then are replaced by other forms of money is important in the quest to understand what exactly money is. Monetary theory concepts concerning Gresham’s Law and the Quantity Theory of Money are discussed in regard to using rice as money.
Keywords: defining money, rice as money, requirements for money to exist, historic examples of money.
JEL Classification: N00, N10.
Cite as: Gentle, P. F. (2021). Rice as an Early form of Money in the Economic Sense: Satisfying Store of Value, Unit of Account and Medium of Exchange Requirements. SocioEconomic Challenges, 5(1), 89-94. https://doi.org/10.21272/sec.5(1).89-94.2021
This work is licensed under a Creative Commons Attribution 4.0 International License
- Abdullah, Adam (2013). Examining the Value of Money in America over the Long Term (1792-2009). International Journal of Economics and Finance,5, 58-84. Available at: https://www.researchgate.net.
- CGIAR (2020). Importance of Rice. Research Program on Rice. Available at: http://ricecrp.org/importance-of-rice/
- Einzig, Paul (1966). Primitive Money, Oxford: Pengamon Press. Available at: https://www.elsevier.com/books/primitive-money/einzig/978-0-08-011679-2.
- Ekelund, Robert B., Jr., John D. Jackson, Robert D. Tollison (2017). The Economics of American Art: Issues, Artists and Market Institutions, Oxford University Press. DOI: 10.1093/oso/9780190657895.001.0001.
- Gentle, Paul F. (2016). Native American Wampum for Non-Monetary Uses and For Use as Money, Public and Municipal Finance, 3, 16-21. Available at: https://www.researchgate.net.
- Gentle, Paul F. and Marco Giliberti (2017). Were Valuable Art Works an Economic form of Money during the Third Reich period in Germany? Public and Municipal Finance, 33-38. DOI: http://dx.doi.org/10.21511/pmf.06(4).2017.04.
- Gentle, Paul F. (2018). Were Warehouse Receipts for Tobacco an economic form of money during the Colonial period in Virginia. Public and Municipal Finance, 7(1), 37-42. DOI: 10.21511/pmf.07(3).2018.04.
- Gentle, Paul F. (2020a), Beaver pelts as Early forms of Money in the Economic Sense: Satisfying Store of Value, Unit of Account and Medium of Exchange Requirements. Available at: https://www.researchgate.net.
- Gentle, Paul F. (2020b). Stone Money of Yap as an Early Form of Money in the Economic Sense. In review process.
- Gittings, Tom and Ken Goldsmith (2006). Money Matters: The American Experience with Money, Federal Reserve Bank of Chicago, Illinois. Available at: https://ua1lib.org/book/686575/5a8be8?regionChanged=&redirect=206153767.
- Gold (2018). World Gold Council “Money and Gold,” July 9. Available at: https://www.gold.org/about-gold/history-of-gold/money-and-gold
- Greenspan, A. (1966). Gold and economic freedom. The Objectivist Newsletter. Available at: http://www.321gold.com/fed/greenspan/1966.html
- Hart, Matthew (2013). The Race for the World’s Most Seductive Metal, Simon and Schuster. Available at: https://www.amazon.com/Gold-Race-Worlds-Seductive-Metal/dp/1451650035.
- Hayek, Mathias and Ann Horiuchi, eds. (2014). Listen, Copy, Read: Popular Learnings in Early Modern Japan, Amsterdam, Netherlands: Brill Publishers. Available at: https://www.amazon.com/Listen-Copy-Read-Learning-Japanese/dp/9004279709.
- Hersokovits, MelvilleJ. (1965). Economic Anthropology: The Economic Life of Primitive Peoples. New York: W.W. Norton, Incorporated. Available at: https://www.amazon.com/Economic-Anthropology-Life-Primitive-Peoples/dp/0393003094.
- Horizon (2001). Money in the Fur Trade. Horizon Canada (English Edition), N. PAG. CA: De Marque, Inc. Available at: https://search.ebscohost.com/login.aspx?direct=true&db=khh&AN=5616927&site=eds-live&scope=site
- Le duc, Adtieene, (2000). Old Money, Beaver,pp. 8-12. Available at: https://www.researchgate.net.
- Mankiw, N. Gregory (2015). Principles of Economics, Stamford, CT: Cenage Publishers. Available at: https://www.cengagebrain.co.uk/shop/isbn/9781305585126.
- Menger, Carl (1871). Principles of Economics, original title: Grundsätze der Volkswirtschaftslehre Auburn, AL, USA: Ludwig von Mises Institute. Available at: https://cdn.mises.org/Principles%20of%20Economics_5.pdf.
- Mishkin, Frederic S. (2006). The Economics of Money, Banking, and Financial Markets, New York: Pearson Addison-Wesley. Available at: http://bibliotheque.pssfp.net.
- Myers, Margret (1970). A Fin.ancial History of the United States. New York: Columbia University. Available at: https://doi.org/10.1177/000271627139400191.
- Nettles, Augustus M. (1964). The Money Supply of the American Colonies before 1720, New York: Sentry Press. (Reprint of 1934 edition.) Available at: https://www.amazon.com/MONEY-SUPPLY-AMERICAN-COLONIES-BEFORE/dp/B00CXQES3Y.
- Pearce, David W. (1986). MacMillan Dictionary of Modern Economics, New York: Macmillan Publishing Company. Available at: https://www.amazon.com/Macmillan-Dictionary-Modern-Economics/dp/0333417488.
- Peña, Elizabeth S. (2001). The role of wampum production at the Albany almshouse.” International Journal of Historical Archaeology, 5(2), 155-174. Available at: https://dokumen.pub/atlantic-metropolis-an-economic-history-of-new-york-city-1st-ed-978-3-030-13351-1978-3-030-13352-8.html.
- Radford, R.A. (1945). The Economic Organization of a P.O.W. Camp. Economica, 12(48), 189-201. Available at: http://www.jstor.org/stable/2550133.
- Rice Money, (2011). Encyclopedia of Money – Rice Currency. Available at: https://encyclopedia-of-money.blogspot.com/2011/10/rice-currency.html.
- Rothbard, Murray N. (2002). A History of Money and Banking in the United States: The Colonial Era to World War II, Auburn, Alabama: Ludwig Von Mises Institute. Available at: https://mises.org/library/history-money-and-banking-united-states-colonial-era-world-war-ii.
- Stigler, George (1950). The Development of Utility Theory. The Journal of Political Economy, 58(4), 307-327. Available at: http://dx.doi.org/10.1086/256962.