• Unit 1: Introduction to Monetary History

    This unit introduces the human interaction with money and lays the groundwork for a layered money system. It examines the transition from precious metal to precious metal coins and the pros and cons of a coinage system. It claims that the florin, a gold coin minted by the Republic of Florence in 1252, was the foundation of a pan-European monetary system. A system of banking networks, double-entry accounting, and credit instruments developed as the basis of the modern financial system. This unit attempts to explain why a layered money system is important for understanding global commerce and how one evolved before the era of central banking.

    Completing this unit should take you approximately 2 hours.

    • 1.1: The First Coins

      This subunit summarizes how humans arrived at precious metal coins as a universally recognized money form by discussing early coins and the role of government in the issuance of currency. This subunit claims that a coinage system has significant pros and cons and defines important monetary concepts such as denomination and fungibility.

    • 1.2: The Florin

      This subunit explains the significance of the gold florin coin in the context of monetary history. It looks at how the florin laid the foundation for a banking network to emerge and trace the beginning ideas of a world reserve currency. It makes claims about the major disadvantages to the monetary system before the 16th century, including coin multiplicity, physical transfer, and money velocity as an economic force.

    • 1.3 Supplemental Information

    • Unit 1 Review and Assessment

      • Receive a grade