Money is one of the most important things in this world. It makes the world go round. There is many different forms of money used around the world, its value is recognized by its significance. For the Yap people their currency is made up of lime stone rocks carved into cylinders. These rocks would be decorated and customized for whoever had them made. These stones, being huge in size, would not move from its final placement. The Yap people relied on word of mouth for financial records. This is almost like today’s modern credit system. Our credit system is based on invisible money that appears electronically.
Currency can be anything, as long as it has value to whomever wants it. In the past money was made of preshes metals. Gold was the most saute after currency since it does not really loose its value. Most countries used gold to back their paper currency. The United States of America used gold to back the currency. During the Great Depression, many countries wanted to insure their assets would be secured. France being one of them, wanted to secure its credit in gold. The United States dived the French shares. Eventually this would change. The gold would not be used to back the currency’s value. This would start the modern day system of credit.
Inflation is good and bad for an economy. To much inflation is bad because it discredits the moneys worth. Prices for everyday goods would jump. An example of this is Brazil. It had to much inflation and no one had money to buy the things they need. Eventually the currency was changed and the economy leveled out. This made it better for the Brazilian people.
In the end money is truly one of the most important things to have. It can be anything as long as it retains its value.