Early Exchange Before coins or paper, ancient economies used direct bartering-goods for goods, such as grain for tools. Limitations Barter required both parties to want what the other offered, leading to inefficiencies. Value Recognition Items like salt, cattle, or shells gained value as common mediums of trade.

The U.S. Treasury used to print a S100,000 bill. This Bill displays a portrait of Woodrow Wilson and has the denomination boldly engraved in the corners, as all US Bills do. None of this exclusive currency, however, is in circulation. It is used only in transactions between the Federal Reserve System and the Treasury Department. This denomination will never pass over the tellers desks in a local bank branch.

Lydian Innovation The first official coins were minted in Lydia (modern Turkey) around 600 BC from electrum, a natural gold-silver alloy. Government Stamps These coins bore state symbols, guaranteeing authenticity and standardizing trade. Influence Spread Coinage quickly spread across Greece and beyond, shifting economic systems away from barter.

Chinese Beginnings The Tang Dynasty issued early forms of paper money in the 7th century, with official bills emerging during the Song Dynasty. Global Spread Marco Polo described Chinese paper currency in Europe in the 13th century, leading to its eventual adoption across the West. Fiat Shift Most paper money today is fiat-not backed by gold or silver, but by government trust and regulation.

Medieval Banks Modern banking traces its roots to Italy, where merchants began offering loans, deposits, and currency exchange in the 12th century. Central Institutions Central banks, like the Bank of England (1694), were founded to manage national currencies and debts. Digital Evolution Online banking, mobile apps, and digital wallets have transformed how we save and spend money today.

First Shares The Dutch East India Company issued the world's first publicly traded shares in 1602, launching the Amsterdam Stock Exchange. Global Trading Stock markets now influence global economies, enabling investment in business growth and national industries. High-Speed World Algorithmic trading, ETFs, and 24/7 markets have reshaped investment landscapes.

Bitcoin's Birth Launched in 2009, Bitcoin introduced decentralized digital money built on blockchain technology. Beyond Bitcoin Thousands of cryptocurrencies exist today, with Ethereum, Solana, and others offering smart contract platforms. Controversy and Innovation Crypto faces scrutiny over volatility and regulation, but continues to push boundaries in finance and tech.

Zimbabwe Crisis In the late 2000s, Zimbabwe experienced monthly inflation rates in the millions, rendering its currency worthless. German Example Post-WWI Germany saw citizens wheelbarrowing cash to buy bread, a classic case of hyperinflation. Stability Importance These examples highlight the need for sound monetary policy and trusted banking systems.

Top Heavy A small percentage of the global population owns the majority of wealth, a trend growing since the 1980s. Global Disparities Developed nations have more per-capita wealth than poorer countries, leading to systemic imbalances. Solutions Debated Policy proposals range from taxation reform to universal basic income to close the gap.