The Origin of Money as the Ability to Obtain Goods and Services

Abstract

The chapter provides examples of the origin of the ability, including historical ones. However, it also notes that though examples from the history are useful, the question of the origin of money is rather about the analysis of the context that provides someone the ability to obtain goods and services from others. In a given context, the ability arises due to a game-like situation, where the outcome of the action of someone depends on the action of others. The chapter analyses both market-based and non-market-based transactions, and identifies that the creation of the ability is finally down to the use of the human body and mind. In a market, the parties can negotiate to exchange the produce of their body and mind. In a non-market-based situation, a party, such as a dictator can use the body and mind of the followers to extract goods and services from the rest of the population. In a one-sided transaction, a party may receive nothing or a very negligible amount in return. But it is the context that makes the money, i.e. the ability possible, and that may disappear or come back in changing contexts.