Vom Gelde

Summary

The paper looks back on the historical role of money. It starts by commenting on the different perceptions of money and a monetary economy by economists and noneconomists. Later on special emphasis is given to the most important functions and the different kinds of money in history. Furthermore there is a short review on the money creation process as well as on the effects of money on the real sector in the economy, sometimes stimulating production and employment and sometimes generating inflation. The paper finally links the historical monetary experiences to two recent disturbing monetary developments: the 2008 worldwide crisis of the banking and financial industries on the one hand and the actual and potential solvency crisis of Euro-area countries. It concludes with some remarks on the feasability of a monetary union between countries with different levels of and different attitudes to public debt.