Author: David Graeber

ISBN: 978-1612194196

At universities we're taught that money (as means of measuring and keeping value) developed because of serious limitations of the barter trade. But, was that really the case? There is a more plausible theory that is not yet lectured at universities.

EXCERPTS

The main idea of the book is that the money as means of measuring and keeping value developed from the debt. At first, the majority of trade was done within communities, where people knew each other. The debt was usually kept recorded only in one's memory. It was nevertheless sufficient to keep the trade going. (The barter trade was reserved above all for trade with third parties - the people (merchants) that weren't part of such communities.) In order to collect taxes the Sumerian priests began keeping records of harvests and the associated debt. Soon the debt certificates began circulating as a form of paper money. It wasn't long before the rules started recruiting and paying soldiers by debt certificates.

Read the book if you're interested in the historical background. It is a very interesting and delightful read.

open