Show Less

On the Reappraisal of Microeconomics

Economic Growth and Change in a Material World

Robert U. Ayres and Katalin Martinás

The conventional utility-based approach to microeconomics is now nearly a century old and although frequently criticised, it has yet to be replaced. On the Reappraisal of Microeconomics offers an alternative approach that overcomes most of the objections to orthodox theory, whilst offering some unique additional advantages.
Buy Book in Print
Show Summary Details
You do not have access to this content

Appendix A: Money and Credit

Robert U. Ayres and Katalin Martinás


A.1 MONEY, CREDIT AND BANKS Barter and bargaining between individuals has probably existed as long as humans walked upright. All organized societies of which we have any knowledge engaged in trade. In most cases trade was mostly barter, but in time barter was supplemented by at least one ‘established’ medium of exchange. The Aztecs used cacao beans. Berbers used salt. Coconuts and ivory were used in some places. Many societies bordering the Indian Ocean used cowrie shells. Mountain people sometimes used olive oil or sheepskins or goatskins. And, of course, many societies used metals, ranging from gold and silver to bronze and even iron (Weatherford 1997). The first recognizable gold and silver coins, actually produced by a mint in standard sizes (and stamped with a lion’s head), were introduced around 560 BC by the King of Lydia, in Asia Minor. This innovation so facilitated retail trade and local production (mainly of cosmetics) that Lydia quickly became a regional trade center. In fact Croesus’ wealth is legendary.1 Croesus’ monetary innovation quickly spread throughout the Greek world, and later, the Roman world. The second major innovation in the history of money came 1500 years later. The innovation was credit. The first ‘bank’ offering credit (but only to the feudal nobility) was the Order of the Knights of the Temple of Solomon, later known as the Templars. The order was founded in Jerusalem in 1118 AD to defend the Christian enclaves in the Holy Land, and the sea and land routes thereto. The...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.