The purpose of this field experience was for Economic Fundamentals. We wanted to further investigate and understand the responsibilities of the U.S. Federal Reserve System, while examining currency collection and operations.
The questions for today were:
Why was the invention of paper-like money so important?
What are some of the ways our lives would be different if we had a barter system today?
Would you favor the U.S. copying any ideas from other countries for use on our currency?
I think that the invention of paper-like money was so important because it was a replacement for coined money. Finding the resources to make coin money is a lot harder than it is to make paper. Paper money allows a person to charge large values very easily because it’s to carry. We learned that part of the Federal Reserve Bank’s purpose is to help the economy grow: the invention of paper money helped the economy grow because there is more money in the system.
A barter system is a system for obtaining goods: you trade one of your items for another item that someone else has and is willing to trade. In our time, I don’t think that a barter system would be very functional. In our society, many people don’t need to produce their own good because we rely on manufacturing. It is very difficult to also measure the value of an item.
I don’t think that the U.S. should copy ideas from other countries on our currency because each country’s design is too unique. Historical landmarks, leaders, and even events are sometimes included on design. Since each figure is too unique, I don’t think that the U.S. should copy any ideas. Most of this money is electronic, and a problem that I try to wrap my head around is what backs up that money. Maybe our currency could find a way to make our currency more than “legal tender”.
This is a design I made for new currency: