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The use of money released mankind from primitive arrangements for production and barter; but, in facilitating a high degree of specialisation and change, money has caused individuals to rely upon the entrepreneurial success of others. It caused individuals to rely upon the entrepreneurial lationships can be exacerbated if the monetary system is desrabilising. elationships can be exacerbated if the monetary system is destabilising. Price signals - the means by which dive verse activi ty is coordinated - are orrupted by monetary disturbances. p. 61


- again, "money caused" as if money is a  being with its own will.
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Закончилось, когда кто-то из нас стал зарабатывать деньги, и мы поняли, что именно они делают нас разными. Они нас разделили.
Another example of how people tend to see money as a conscious actor that has the ability to directly influence their lives. As if money, not they themselves, made the decision to part with old friends and seek some new more promising connections. Why is that so? What is this unique property of a rather simple exchange medium that makes us perceive it as an external force instead of what it really is: a simple piece of colored paper or a number on a bank statement?

In this particular case money plays the role of an easily accessible success quantifier. A person, having solved, either consciously or subconsciously, a "status change" detection problem, faces the decision about what to do with this new information. Unable to ignore it, she decides to move on to a new, more promising environment, while placing the responsibility for her decision with ... the money: Money made me do it. This is not new. We keep hearing this phrase ever since money was invented. ( Dostoevsky's Raskolnikov example ).

There seems to be a perception that money has at least some degree of control over people's actions. This feeling comes from our everyday experiences, because even the humbliest of us use money to control other people's behaviour. For example, a dollar bill given to a shopkeeper makes him part with a pound of apples. A coin dropped into a vending machine produces a candy. Like classic Pavlovian dogs, people and machines respond to money stimuli.  ( maybe more example here ...).

Controlling somebody's actions or likewise being controlled by money signals in everyday exchanges, we learn to associate money with external control. Thus, when we make a decision triggered by a status change measured in money, we produce the conditional response: money made me do it.

== it's more of an instrumental conditioning, or a combination of classic and instrumental conditioning.
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Following the capture of Washington in 1814, and in many cases it must be supposed welcoming the excuse, the banks outside of New England suspended specie payment. The elimination of any need to redeem notes greatly facilitated their issue. It alse led to a highly complicated set of discounts when the notes were forwarded for buying goods or paying debts. The notes of New England banks, since they were exchangealbe into gold o silver, were accepted at par therewith. The slightly less promising notes of New York were subject to a discount of 10 percent. The distinctly more garish notes of Baltimore and Washington banks had a 20 percent discount. Numerous notes from west of Appalachians were at a 50 percent discount. Galbraith, p.92.
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With the rise of these banks the profits from sweating, adulterating and otherwise diminshing the coinage fell. And, equally or more important, with the rise of national states coins became fewer and better minted.
The problems assiciated with money ceased to be those of coinage; the became, instead, those of banks and exchequers, not excluding those of the institutions that had been established to safeguard the coinage.
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The merchants of Amsterdam at the end of the ixteenth century-a hundred years after the great flow f silver had started-were the recipients of a notably diverse collection of coins, extensively debased as to gold or silver content in various innovative ways. A manual for money changers issued by the Dutch parliatnent in 1606 listed 341 silver and 505 gold coinS.
Within the Dutch Republic no fewer than fourteen rUnts were then busy turning out money;

For each merchant to weigh the coin.. he received was a bother; the scales were also deeply and justifiably suspect.dam Smith told. 170 years later. of the solution: "In order to remedy [the aforemenhoned] inconveniences, a bank was established in 1609 l1I1~er_ the guarantee of the City. This bank received oth foreign coin, and the light worn [and other de>ased] coin of the country at its real intrinsic value in the good standard money of the country, deducting lly so much as was necessary for defraying the eJl!" lease of coinage, and the other necessary expense 01 lanagement. For the value which remained, after thi! imall deduction was made, it gave a credit on its books."12 Thus appeared, to regulate and limit abuse of he currency, the first notable public bank.
p. 19-20
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Human nature lay be an infinitely variant thing. But it has constants. )ne is that, given a choice, people keep what is the ,est for themselves, i.e., for those whom they love be most.

With numerous coins in circulation variously aduIera ted, clipped, filed, sweated, trimmed, and with he worst being offered first, coins became a probm. The path was now open for the next great rcorm, which was to go back to weighing. This decilve step was taken by the City of Amsterdam in 1609 -a step that joins the history of money to the history if banking. It was a step especially occasioned by the arge trade of Amsterdam. That, in turn, was assoated with one of the most pervasively influential :vents in the history of money-the voyages of Columbus and the effect on Europe of the ensuing conluest and development of Spanish America.

Discovery and conquest set in motion a vast low of preciou~ metal from America to Europe, and the re~ult was a huge rise in prices-an inflation occasioned by an increase in the supply of the hardest of hard money.
p. 13
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Metal was an inconvenient thing to accept, weigh, divide, assess as to quality in powder or chunks, although more convenient in this regard than cattle. Accordingly, from the earliest known times and more likely somewhat before, metal was made into coins of predetermined weight. This innovation is attributed by Herodotus to the kings of Lydia, presumably in the latter part of the eighth century BC.

Coinage after the Lydians developed greatly in the Greek cities and in their colonies in Sicily and Italy to become a major art form. p. 10.


Coinage was a notable convenience. It was also an invitation to major public and minor private fraud. For profligate or hard-pressed rulers, and these, over time, have been n clear majority of their class, it regularly appeared as a flash of revelation that they could reduce the amount of metal in their coins or run ill some cheaper brass and hope, in effect, that no one would notice, at least soon. . Thus a smaller lmount of silver or gold would buy as much as before, or the same pure weight that much more. p.11
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There is nothing about money that cannot be understood by the person of reasonable curiosity, diligence and intelligence. Galbraith, p 6.

The study of money, above all other fields in economics, is the one in which complexity is used to disguise ruth or evade truth, not to reveal it. Most things in life - automobiles, mistresses, cancer - are important only to those who have them. Money, in contrast, is equally important ot those who have it and those who don't. p.6

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