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Japanese commodity money before the 8th century AD: arrowheads, rice grains and gold powder. This is the earliest form of Japanese currency. Commodity money is money whose value comes from a commodity of which it is made. Commodity money consists of objects having value or use in themselves (intrinsic value) as well as their value in buying ...
Under Gresham's law, "good money" is money that shows little difference between its nominal value (the face value of the coin) and its commodity value (the value of the metal of which it is made, often precious metals, such as gold or silver). [4] The price spread between face value and commodity value when it is minted is called seigniorage.
Money is well-suited to storing value because of its purchasing power. [3] It is also useful because of its durability. [4] Because of its function as a store of value, large quantities of money are hoarded. [5] Money's usefulness as a store of value declines if there are significant changes in the general level of prices. [6]
In the reified perception of the political economists and the vulgar Marxists, products have value because they are expressible in money-prices, but Marx argues [201] that in reality it is just the other way round: because commodities have value, i.e. because they are all products with an average current replacement cost of social labour, [202 ...
Many items have been used as commodity money such as naturally scarce precious metals, conch shells, barley, beads, etc., as well as many other things that are thought of as having value. Commodity money value comes from the commodity out of which it is made. The commodity itself constitutes the money, and the money is the commodity. [32]
A 1977 resolution of the Bay Area Communist Union, an American Maoist group, stated that: "In socialist society, commodity exchange, as well as value and the law of value continue to a certain extent. Only communism obliterates all aspects of commodity exchange, value, money, etc. However, one commodity does disappear under socialism: labor-power."
The first instances of money were objects with intrinsic value. This is called commodity money and includes any commonly available commodity that has intrinsic value; historical examples include pigs, rare seashells, whale's teeth, and (often) cattle. In medieval Iraq, bread was used as an early form of money.
Karl Marx described price as the money-name for the labour realised in a commodity. [3] A commodity value is dependent on its utility. [4] Because money becomes valuable not due to its substance, that is, its commodity value, but rather because of its performance, currencies tend to become token. [5]