Money and Banking: Lecture 3 - Functions of Money 2

[@anhkhoa91280]

It's wonderful to have this teaching service for amostly free. Thanks for putting up the video lectures.

[@Nik-wo7hk]

Wow what a brilliant guy

[@ayjay10016]

Wonderful teacher! :)

[@dosomething3]

Did the coins have a value other than the value of the material that they were minted from?

[@dosomething3]

No. The Professor said that from barter they switched to certain commodities and from there they switched to bags and from there they switched to coins. But the coins carried only their own very value.

[@dr.hakansahin]

@@dosomething3 Coins carry a higher value than the value of the material they were minted from because of the cost of minting. One who mints money should be able to sell it with a profit that should cover the cost of material + all the expenses of minting + certain amount of the capital invested in the first place + certain income for the minter in order to continue his work + taxes (if any) & etc... Otherwise the minting process would not take place.

[@dr.hakansahin]

They can earn this profit because of the buyers' desire to use coins instead of bulk material that is based on the lower transactions costs that coins provide. (no need to weigh or test of purity, and carry the necessary tools to do so, etc.)

[@heterophony2]

Yes. That difference in value is called "seigniorage." Seigniorage is the difference between the face value of the coin and the material costs of making the coin (roughly speaking). That difference is profit, and that profit can be used as revenue for fiscal spending. It provides an extra revenue stream other than taxation; or it can be seen as a sort of hidden tax. This is one reason why governments like to retain a monopoly on issuing money: there is lots of money to be made!

[@mikepiro7379]

Thanks for this great video! i wish he was my econ prof. BTW Alexander the great did not spread the usage of coins, it was the Persian empire.

[@ТульпанРоза-ю9д]

can you suggest some interesting books

[@CptWacko]

The Bitcoin standard, it will explain to you the difference between easy money (fiat money like USD) and hard money (gold, silver, Bitcoin, etc)

[@dlessandllow8545]

Thank you for this video, great tutorial.

[@Crave228]

19 minute mark talking about manufacturing economy vs service economy, we still get vast amounts of manufactured goods they just come from China. This guy is either being disingenuous propagating globalism or he’s sorely misinformed.

[@coimbralaw]

Easy to talk sh*t from an anonymous account. I’m real life you’re just a p*ssy

[@Crave228]

@@coimbralaw better to be a right pussy than one who is a misguided and wrong “real life.”