The history of paper money in the world. When and where did paper money first appear? Real paper money
The history of the appearance of paper money, in all likelihood, dates back to the 1st century. BC. and is associated with leather money. At this time, money made from the skins of white deer appeared in China. They were in the form of quadrangular plates and were equipped with special signs and seals. These tickets had different purchasing power and were required to be accepted under pain of death. The emergence of paper money was associated with the name of Khan Kublai, the grandson of Genghis Khan. And while the bills could be freely exchanged for full-value money, they were successfully circulated. Later, in the XIII century, paper money was issued in Persia, and in the XIV century in Japan. However, the widespread use of paper money began at the end of the 17th century.
In the XII-XV centuries. For the convenience of trade, merchants create banks to replace cash payments through them with non-cash, more convenient and secure ones. But only capitalism with its developed credit system creates broad opportunities for the development of paper money.
There are two types of paper banknotes: state, issued by the treasury (treasury notes) and banks (bank notes or banknotes - bank notes). Treasury bills are commonly referred to simply as paper money, in contrast to banknotes, which are credit money in nature. Historically, paper money appeared before credit money. Banknotes appear with the development of credit relations.
It is not bad to recall the words of the great Englishman Adam Smith, who said that paper money should be considered as a cheaper instrument of circulation. Indeed, coins are erased in circulation, part of the noble metal disappears. In addition, the demand for gold in industry, medicine, and the consumer sphere is increasing. And most importantly, the trade turnover on a scale of trillions of dollars, rubles and other monetary units is simply beyond the power of gold to serve. The transition to paper money circulation has dramatically expanded the scope of commodity exchange. Unlike metal money, paper money is only a sign of value, a representative of gold. "Paper money is only insofar as the signs of value, since they are representatives of certain quantities of gold, and the quantity of gold, like all other quantities of commodities, is at the same time the quantity of value."
Paper money is a token of full value money. Money as a medium of circulation plays a fleeting role in the exchange of goods. Therefore, gold functions here only as apparent gold, and since money is not the universal embodiment of wealth, it does not matter for the seller whether the money has the value that is written on it. It is important for him that this money is publicly recognized. This and the fact that paper money is more convenient in circulation explains the transition from metallic money to paper money. The possibility of such a transition lies in the function of money as a medium of circulation. The use of this opportunity for the practical implementation of the issue of paper money into circulation presupposes the presence of two conditions: relatively developed commodity-money relations and the presence of trust in paper money. In pre-capitalist times, paper money existed only as long as it was freely exchanged for full value. With the rise of capitalism in the person of the bourgeois government, finally, there was someone whom people could trust.
Thus, paper money is banknotes that cannot be exchanged for full value money, issued to cover the state budget deficit.
The issue of paper money should be limited by the amount of full-value money needed for circulation in a given period, in other words, by the amount of gold money that they replace in circulation. The issue (issue) of paper money is determined not by the need for commodity circulation, but by the deficit of the state budget. But no matter how much paper money the state issues, they will only represent the amount of full-value money that they replace in circulation. This is the essence of inflation, that is, a decrease in the purchasing power of paper money. But the depreciation of money can also occur for other reasons: a decline in confidence in the government, a passive balance of payments.
Credit money arises from the function of money as a means of payment, the development of which occurs on the basis of capitalist credit. There are three types of credit instruments of circulation: a bill of exchange, a banknote and a check. Moreover, the oldest is the bill - it appeared already in the 12th century as a means of payments between merchants, and the last two were created by banks as credit instruments.
A bill of exchange is a written, abstract and indisputable obligation of the borrower to pay a certain amount to the lender upon the expiry of the term specified therein. Let us explain some words from the definition.
Abstractness - the bill does not indicate the cause of the debt.
Indisputable - the person who issued the bill does not have the right to refuse payment.
Bills are simple and transferable.
Simple in. - a written commitment issued by the debtor to the creditor to pay after the expiration of the term.
Translated into. - a written commitment issued by the debtor to the creditor for payment after the expiration of the term to the creditor or to whom he tells.
The lender can use the bill as follows:
- 1. to receive money upon expiration of the payment period;
- 2. to register the promissory note in the bank having received its amount minus the discount interest;
- 3. use as a means of payment when purchasing goods (if the supplier agrees to accept the bill of exchange as payment.
So, due to its abstractness and indisputability, the bill acquires a third property - negotiability.
A bill of exchange is a short-term obligation, usually up to 3 months.
The replacement of metallic money in circulation by promissory notes occurs in two ways: metallic paper exchange is equivalent
- 1. Before maturity, bills of exchange may be treated as means of payment and purchase.
- 2. Part of the bills is mutually redeemed, thus eliminating the need for money.
A banknote is a bill of exchange of an issuing bank. A banknote differs from a bill of exchange, since it is not issued only for a specific transaction. In contrast to a bill of exchange, a banknote is an indefinite obligation of the bank, which was previously subject to exchange for gold upon presentation ("The Assignment Bank pays the announcer of this state bill with a current coin").
When accounting for bills, the bank issued banknotes, one type of credit money was replaced by another. When paying bills, the banknotes were returned back to the bank.
The central bank is closely associated with the government, which uses its loans against its short-term obligations. Since government spending is unproductive, such borrowing will cause excess emissions. To prevent this, it is necessary to freely exchange banknotes for gold, then the number of banknotes will be determined by the needs of commodity circulation.
With the termination of the exchange of banknotes for gold, the mechanism of bank issue undergoes significant changes, along with this, the nature of banknotes also changes. Along with commercial bills, government bonds and treasury bills are used as legal security for banknotes. Real bill security gave way to fictitious. Banknotes that cannot be exchanged for gold are completely subject to the law of circulation of paper money, and they are characterized by inflationary depreciation.
A check is a written order of the owner of the current account in the bank to pay the specified amount to a certain person, or to whom the person orders, or to the bearer of the check.
It is used both in the domestic and foreign markets. Unlike a bill of exchange, it is a perpetual obligation.
For a check to have the effect of a legal promissory note, it must have:
- 1. an indication of who has the right to receive this money;
- 2. the amount of payment in figures and words;
- 3. the name and location of the bank;
- 4. signature of the drawer.
Checks are subdivided into:
with the right to transfer to a third party (warrant),
without the right to transfer to a third party;
bearer
The inevitable companion of paper money is inflation. It arises from the impossibility of spontaneous adaptation of paper money to the needs of trade and the use of emission by governments to cover the budget deficit.
exchange and fully covered with a metal foundation,
changeable with partial coverage or without it at all,
irredeemable upon presentation, but subject to seizure and covered by special obligations,
non-exchangeable or exchangeable only within a certain period and not having special coverage.
2. Paper money with a compulsory rate:
exchange certificates with full coverage of the metal fund,
fiat currency, with or without full coverage,
non-exchangeable interest-bearing paper money with a compulsory rate,
non-exchangeable interest-free paper money with a compulsory exchange rate.
The last category includes rubles, dollars, etc. A compulsory rate is established with the aim of artificially keeping the surplus of paper money in circulation and thereby maintaining their value. But these measures usually lead to completely different consequences, first of all to the fact that gold and silver disappear from internal circulation, become an ordinary commodity and are exchanged for paper money with a more or less significant crap (surcharge). But the coercive exchange rate fails to keep the value of paper money at a certain level.
Although fluctuations in the exchange rate are due to the amount of paper money in circulation, it is influenced by other reasons. In a country with paper money circulation, most paper money is in a bound state, i.e. on current accounts and in the pockets of citizens. During a period of stagnation in the economy, most of the money is in a free state, reducing the exchange rate of this monetary unit. Also, the exchange rate is influenced by: the demand for metallic money in interstate payments, the degree of confidence in the strength of the country's economy. The influence of stock speculation is not the main, but an indirect reason. The process of forming modern money does not stop there. It acquires new forms in connection with the development of credit relations.
Once upon a time people were just as reluctant to get used to paper money as they do not want to give it up today.
This is how cash looked several centuries ago Photo: http://www.thisismoney.co.uk/
Speaking of a cashless society, the first country that comes to mind is this. It is this state that is most actively abandoning paper money, using other forms of electronic payments. Interestingly, several centuries ago, this state was also at the forefront of financial changes. In 1661, for the first time in Europe, they began to move away from minting coins and started issuing banknotes.
PaySpace Magazine editorial staff compiled a list of countries that were the first to begin the transition to paper money. Looking ahead, let's say that this list includes countries that are still considered leaders in financial innovation.
China - 11th century
Copper plate for printing paper money, made between 1127 and 1279. On the right is a modern proof print taken from this plate.
The first paper money was issued in China. And it happened much earlier than in Sweden. Not surprisingly, it is this state that is considered the birthplace of paper.
It was inconvenient for Chinese merchants to transport large amounts of coins and pay with them when concluding trade deals. Paper money turned out to be lighter and more convenient than metal bars. Then no one could have thought that over time, paper money would also become irrelevant.
The first banknotes were printed in the 11th century during the Song Dynasty. They were printed on reed A4 sheets. And they confirmed that the merchant owned a certain amount of money.
Today, China also dictates fashion in finance. In 2018, the top ten FinTech 100 ranking included four organizations from China - Ant Financial, Baidu, Lufax and JD Finance. Mobile payments are rapidly developing in the country - more than 500 million Chinese use the Alipay service on an ongoing basis.
Sweden - 1661
Sweden 1663 (dahler)
The first paper money in Europe appeared in the 17th century in Sweden. The Swedish authorities needed a loan and the head of the Stockholm Bank, instead of issuing a loan in copper coins, decided to print credit papers, which were called paper dalers.
A few years later, it turned out that the state did not return the loan to the bank and the credit institution was forced to print paper money. Which were no longer provided with precious metal. Therefore, the bank went bankrupt, and its founder and ideologist of launching paper money in Sweden, received a life sentence.
Swedish paper money also took a long time to catch on. Documents have been preserved confirming that it was not only unusual for foreign merchants, but also unprofitable to make payments in paper dalers.
However, Sweden was the first in Europe to find a replacement for coins. It will not be surprising if Sweden becomes the first state to find a replacement for electronic money, which is only gaining ground in the payments market.
USA - 1690
Massachusetts 1690 (20 shillings)
Paper money appeared in the United States earlier than the dollar. In 1690, the Massachusetts Colony (today Massachusetts) issued the first notes in denominations of 2 shillings to 10 pounds. They were intended to cover the needs of a military expedition to Canada and were used primarily to pay salaries to soldiers.
Norway - 1695
Norway 1695 (20 Riksdaler)
The first banknotes in Norway appeared in 1695. The merchant Johan Molen, one of the richest people in the kingdom, received the right to issue paper money. His ships were increasingly targeted by pirates. And being on the verge of bankruptcy, he turned to the king with a request to issue a paper confirmation of his condition until the remaining ships with goods returned to port.
These notes were legal tender in a small part of Norway. But they did not save the merchant from bankruptcy.
England - 1694
England 1697 (pound)
In England, banknotes appeared at the height of the war with France. The government initiated the creation of the Bank of England in order to raise funds to prepare for the next stage of the battles.
The first banknotes were issued in denominations of 5 to 100 pounds and could be exchanged for gold or coins at the request of the owner of the paper. Initially, the denominations of banknotes were applied manually on bank paper and signed by one of the bank tellers. Today this country is printing.
The 18th century became a real banknote revolution in Europe. Money on paper was issued by France (1701), Denmark (1713), Italy (1746), Austria (1759), Russia (1769) and other countries.
France 1707 (1000 livres)
Denmark 1713 (1/6 of the riksdaler)
Italy 1746 (100 lire)
Austria 1759 (10 guilders)
Russia 1769 (25 rubles)
In the old days, ordinary residents were reluctant to switch to settlements with paper money, preferring coins. Or even barter. It took time to convince people of the reliability of paper money. Likewise today, electronic and mobile wallets cause concern for most users. However, as time has shown, innovation is gradually becoming a habit and becomes the most common means of payment.
On January 9, 1769, Empress Catherine II issued a Manifesto on the establishment of two bank notes and the issue of bank notes. From that moment on, the history of paper money began in Russia. Today about the most unusual Russian banknotes.
The first Russian banknote
The first paper money in the Russian Empire was the denominations of 25, 50, 75 and 100 rubles, issued in 1769. They were printed on white watermarked paper. Then it was the peak of technology, and today coins with a QR code have been issued. The new Russian money was called banknotes and was printed in two banks established by Empress Catherine II in Moscow and St. Petersburg. The official goal of replacing copper money with paper money is the need to reduce the cost of issuing money, but in fact, this is how the wise empress raised funds to organize the Russian-Turkish war.
"Petenka"
The largest denomination of the Russian Empire is the 500 ruble denomination, issued from 1898 to 1912. The size of the bill is 27.5 cm by 12.6 cm. In 1910, one “petenka” is two annual salaries of the average Russian worker.
Kerenki
The banknotes that were issued by the Provisional Government in 1917 in Russia, and in the period from 1917 to 1919 the State Bank of the RSFSR on the same clichés before the appearance of Soviet banknotes, were called "kerenki", after the last chairman of the Provisional Government A.F. Kerensky. As banknotes, they were valued very low, and the people preferred tsarist money or banknotes of the government, which at that time seized power in a particular territory. Small kernels (20 and 40 rubles) were supplied on large uncut sheets without perforation, and they were simply cut off from the sheet at the time of payment of wages. A sheet of 50 kernels with a total denomination of 1000 rubles was popularly called "piece". They were printed in different colors, on the wrong paper, and sometimes on the back of labels of goods and products.
Limard
One billion rubles bill.
In the early 1920s, during the period of hyperinflation in the Transcaucasian Soviet Socialist Republic (and these are the Azerbaijan, Armenian and Georgian SSRs), a banknote with a face value of 1 billion rubles was issued (colloquially - limard, lemonard). On the front side of the bill, the denomination was depicted in numbers and in letters and contained warning inscriptions, and on the back side, the artists depicted a woman worker, the coat of arms of the ZSFSR and floral ornaments.
Paper chervonets
After 1917, the largest in terms of purchasing power was a denomination of 25 Soviet chervonets. It was backed by 193.56 grams of pure gold. It is worth noting that at the same time as the paper ducat issued in the fall of 1922, the Soviets began to issue gold ducats in the form of 900-carat coins. In size, the Soviet chervonets fully corresponded to the pre-revolutionary 10 rubles.
"Bread" money
In 1921, during the rampant hyperinflation of Soviet rubles and famine, the Kiev Natursoyuz issued settlement checks in denominations of 1 pood of bread. Natural checks were issued in denominations of 1, 2, 5, 10, 20 natural rubles or poods. It was reported that "the smallest denomination of the Union's naturche is equal to 1 naturkopeck, which is 1/100 pood of rye flour, 10 naturkopiek is 1 share, and 100 naturkopiek is 1 natural ruble (pood of rye flour)"
"Wine" money
Wine money of Yakutia.
After the October Revolution, the role of money in Yakutia was played by wine labels, which were issued by the future People's Commissariat for Finance of the republic, Alexei Semyonov. It became known about "wine" money thanks to the essay "On the unit" by Maxim Gorky. He wrote: “Of all the paper money that was put into circulation in the boundless space of the Union of Soviets, Aleksey issued the most original money: he took multi-colored labels for bottles of wine, wrote with his own hand on Madera - 1 p., On“ Cahors ”- 3 rubles, "Port wine" - 10 rubles, "Sherry" - 25 rubles, attached the seal of the People's Commissariat of Finance, and the Yakuts and Tunguses very well accepted this money as a salary and as the price of food. When the Soviet government canceled these peculiar receipts, Semenov sent me samples of them. "
Coupons
In the early 1990s, the country of the Soviets was struck by a massive deficit, and there was not enough money to buy goods. The Soviet bureaucracy remembered the tried-and-true method of distributing scarce products by cards, but at the same time used the delicate word “coupons”.
Vneshtorgbank checks
In the USSR, there was a chain of stores "Berezka", where they accepted checks of the "D" series. Such checks represented a monetary obligation of the State Bank (Vneshtorgbank) of the USSR to pay the amount indicated in the check and were intended for payments to certain categories of citizens for goods and services. All receipts were printed at GOZNAK.
Vertical banknote
For the 2014 Olympics, the Bank of Russia issued a commemorative banknote of 100 rubles. The total circulation of the banknote is 20 million copies. This is the first Russian vertically oriented banknote.
Today the world is hard to imagine without paper bills, although money transactions are gradually moving into the virtual area. Who knows if electronic money will replace the real money, and if this process will happen at all. We got used to paper means of payment and stopped asking ourselves where they came from. It turns out that the first country to put into circulation money printed on paper was China, this is also one of the interesting facts about China. The Celestial Empire gave the world not only porcelain, gunpowder, compass and many other useful discoveries, but also set an example in the use of paper bills.
The fact that the earliest coin that has a mass circulation, appeared in China, prove finds from the unsolved mysteries of the world in a Chinese tomb, which is more than three thousand years old. According to research results, found among the graves of the 11th century BC. items are money. Ancient coins made of silver and gold have a round shape and a square hole in the middle. They have been recognized as China's standard monetary currency. Metal money was a reliable means of trading, it was difficult to counterfeit.
But there was also a small difficulty associated with them: with a large financial reserve, it was difficult to carry it with you. The rich had to specially hire carts to move their own savings. It was then that the Chinese society came up with "jiaozi" - official papers that confirmed the presence of money and its amount. The fact is that institutions offering money storage services have come to the aid of rich people.
With their help, the state was able to control the economic situation, and people could save savings. This is how the first organizations resembling modern banks appeared. The owners of these "banks" and their clients noticed the convenience in the use of issued securities, which led to the appearance of the first official paper money. This period falls under the Song Dynasty, which led China in the 10th century.
Paper currency has become a convenient means of conducting trading operations, having come to replace heavy perforated metal money. Thanks to the "monetary revolution", the country leaped forward compared to other states of that time. The money was printed in four different regions of China, using colored ink, with the help of which drawings depicting the life of emperors or landscapes of the then empire were applied to paper.
Considering that replacing metal with paper could lead to an increase in counterfeiters, the authorities came up with methods of protection: they produced complex dyes, applied individual seals that were difficult to counterfeit, and on the banknotes themselves they wrote warnings and punishments for those who would be caught for counterfeiting money.
10th century money was called jiaozi and were the legal vehicle for the various trade operations conducted throughout the empire. There were only two denominations of money - "1" and "100". This currency existed until 1279, before the conquest of Chinese lands by the Mongols. She fell into oblivion for as long as 10 years.
But then, since the reign of the Yuan dynasty, paper notes again came into use, but they began to be called "chao". At the same time, the traveler Marco Polo visited China. He was the first to see paper money and, amazed at this discovery, brought several bills to Europe.
In view of the loss of control over the country's gold reserves, money began to depreciate, the country suffered inflation and economic recession. All subsequent Chinese rulers, starting in the 14th century, preferred to use silver and gold, and banknotes disappeared from use until the end of the 19th century. Only then in China again began to print banknotes, which were named "yuan".
Every modern person who has read at least a few historical books and watched films knows that just a thousand years ago all calculations were carried out exclusively with the help of coins - gold, silver, copper, bronze and others. Today, only analogues made of cheap metals can be seen in circulation. Basically, people use paper money. What is the history of the emergence of paper money and the main stages of their formation? You will learn about this from the article.
Where did they first appear
If we simply consider a medium of exchange made of paper, history will lead us to ancient China. Yes, this is where the history of the emergence of paper money in the world begins. At least simply because, according to the official version, paper was made in China. Marco Polo wrote about this back in the thirteenth century, and according to the testimony of Chinese historians, such a system existed in the tenth century BC.
However, this money had the same meaning as the shells of the South American Indians, the skins of the Arctic fox and sable among the peoples of northern Siberia, and pebbles with through holes in the Maori. That is, they were valued simply because they were relatively rare and had a certain value in and of themselves.
Therefore, this paper money has a very distant relationship to the modern payment system. So, if you are interested in the history of the emergence of modern banknotes, you will have to travel to Europe of the fifteenth century.
What became the prototype of modern banknotes
The life of travelers and merchants in the Middle Ages was not easy. Leaving the walls of the city, where the guards kept order, they themselves were responsible for the safety of their property, health and life. It was very difficult to cope with this - the robbers actively hunted on neutral lands, uncontrolled by any free city or feudal lord. Therefore, they could well have killed for a pair of good boots, a handful of copper coins or a few loaves of bread - then life for many people was very difficult.
It was especially difficult for successful merchants. For example, if you had to get from warm and cozy Italy to unfriendly Scandinavia, blown by all winds, you had to go through dozens of kingdoms, often in constant struggle with each other. But you had to carry enough money with you in order to purchase some in-demand product that could be sold at a good profit.
The main means for large transactions were coins - silver and gold. And for a large purchase, you had to carry with you a very weighty bag of gold. If he used silver coins, then the wallet was even more weighty. It is simply impossible to hide it so that the robbers who met the merchant in the dark forest would not find it. Consequently, they had to hire a guard. And a group of experienced fighters would take a lot of money to escort a wealthy merchant with his wealth across half of Europe. And their reliability could not always be relied upon.
Then the usurers came up with a new enrichment scheme. The Italian merchant rented a certain amount in his hometown and received a receipt from them. With her, he could go anywhere in Europe where there were acquaintances or relatives of the usurers. Having provided a receipt there, he received the amount due to him, and could calmly engage in commercial affairs. Yes, for such a service you had to pay an appropriate commission. But this was offset by security and the ability to abandon a large detachment of guards.
Convenience of paper bills
Soon, such a scheme began to become more widespread, as it had a large number of advantages.
For example, a receipt received from a respected, serious specialist made it possible to refuse to check precious coins for falsity, weight, and simply the content of the precious metal.
The compactness was already mentioned above: the receipt for ten gold coins and ten thousand had the same size and weight, which allowed merchants to travel light.
Safety was also a plus - anyone could use ordinary coins, and only a certain person could use a receipt. Therefore, it was often pointless to steal it, because the usurers who valued their reputation would not have cashed a receipt for a thousand gold coins brought by a famous robber.
It is from this moment that the history of the emergence of money from paper begins - from such receipts.
Paper is no longer for merchants
Soon, ordinary people also appreciated the advantages of paper means of payment, primarily due to the advantages listed above.
But they also liked that when moving from one city to another, it was easy to exchange the receipt for real money. To exchange gold English coins for their counterparts in France, not to mention Italy or Russia, was relatively problematic.
But the banknotes became really widespread at the moment when they received support from the state.
Political recognition
European rulers quickly realized that it was much cheaper to make paper money than gold and silver. If only because paper has become much more affordable than precious metals. And here the history of the emergence of a new format of means of payment received a serious impetus.
Waging wars and arranging magnificent balls that devastate the treasury, many kings were forced to issue not very high-quality coins. For example, copper, covered with a thin layer of silver and gold. The common people did not like this - in fact, they had to buy ordinary metal at the price of the precious one.
But with paper notes, such problems did not arise. Ordinary peasants, workers and soldiers could not know that the banknote issued by the state was not backed by gold, and they took it with pleasure, without expressing the slightest dissatisfaction.
But the brief history of the emergence of paper money does not end there.
Banknotes in the Russian Empire
In our country, a new means of payment appeared during the reign of Catherine the Great. By her decree, two banks were founded - in St. Petersburg and Moscow. The capital of each of them was 50 thousand rubles in copper - astronomical sums for those times. The main task of the banks was the introduction of paper notes into circulation - they had a certain gold reserve (even copper) for this.
In subsequent years and centuries, the paper ruble has experienced ups and downs, becoming either a piece of paper that no one needs, or one of the wealthiest and most stable currencies in Europe. The First World War dealt a very heavy blow to the economy. With virtually no industry of its own, the Russian Empire bought everything from machine guns to cartridges abroad. Because of this, money flew out of the country, and to compensate, the number of rubles in just four years was increased almost sevenfold. It was only thanks to some clever decisions that the currency did not collapse. At that time, it depreciated four times in the country, and almost two times in the international arena.
Of course, it is impossible to tell the continuation of the history of the emergence of money in Russia without mentioning the Civil War and the Revolution. During these years, inflation was simply frightening: for five million rubles (or, as they came to be called, lemons), a person bought only a box of matches.
But when the war ended and the economy started to get stronger, everything changed. The ruble was immediately tied to gold. And in the following years, money was replaced several times to stabilize the situation. If it is customary to peg the ruble to the dollar, then in 1924, one unit of American currency (far from the most reliable at that time) was given 2.2 rubles. Ten years later, shortly before the Second World War, the exchange rate dropped to 1.2 rubles.
After the war, despite the sharp strengthening of the American dollar, the ruble was consistently ahead of it. In 1961, one could get 90 kopecks for a dollar, and in 1988 - only 56 kopecks.
This stability was due to the ruble pegged to gold. Starting with the end of the post-war crisis and ending with the collapse of the USSR, one "wooden" one cost exactly 99 grams of gold. This peg made it one of the most stable currencies in the world.
So, if we talk about such a topic as the history of the emergence of paper money in Russia, these years will be a glorious page.
When the system stopped working
After the war, the United States called on all European countries, essentially ruling the world, to unite and peg their currencies not to gold, as it was before, but to the dollar. It happened at the Bretton Woods conference, held in New Hampshire. It seemed logical - exchange operations between states were simplified. And the US economy, which had greatly strengthened during the war years, made it possible to provide the dollar with a huge gold reserve - the USSR paid its "ally" with pure precious metal for stew, cartridges and equipment.
But this did not last long. Having exchanged dollars for the gold reserves of European countries, the United States suddenly announced that all the commitments it had taken at the Bretton Woods conference were being canceled unilaterally. Refusing to provide the dollar with gold, the country continued to issue currency uncontrollably, offering loans to the whole world and buying up real treasures for worthless paper. Of course, the history of the emergence of money did not know such treacherous tricks.
How is the world today
Today, no currency in the world is backed by gold. Therefore, the entire history of the emergence and development of paper money is crossed out.
The lack of pegging to the precious metal has led to the fact that the currency has such a value that other countries are ready to offer for it. For example, the United States produces large amounts of dollars without having either a powerful industry or rich natural resources. And Russia sells oil, gas, timber and other minerals to Europe and Asia for US dollars. This creates a demand for this currency, allowing the US economy to stay afloat.
Conclusion
Now you know a brief history of the origin of money and the function of money in the modern world. Together, we have traced the ups and downs of this system. But alas, even the best economic experts cannot even predict how things will be in the future.
