Story of Money

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Story of Money

Money in traditional economics is defined as any medium of exchange that can be generally accepted. A medium of exchange that can be any object that can be accepted by everyone in the community in the process of exchange of goods and services. In modern economics, money is defined as something that is available and is generally accepted as payment for the purchase of goods and services as well as other valuable property and for payment hutang. Beberapa experts also mentioned the function of money as means of payment delay.

The existence of an alternative transaction providing money easier than barter more complex, inefficient, and less suitable for use in the modern economic system because it requires people who have the same desire to exchange and also the difficulty in determining value. The efficiency is obtained by using the money in the end will encourage trade and the division of labor which would then increase the productivity and prosperity.

At first in Indonesia, the money-in this case kartal- money issued by the government of the Republic of Indonesia. However, since the issuance of Law No. 13 of 1968 Article 26, paragraph 1, the right of the government to print money withdrawn. The government then set a Central Bank, Bank Indonesia, as the only institution entitled to create currency. The right to create money is called the right oktroi.


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