ABSTRACT
This chapter summarizes the importance of money and monetary stability and explain why currencies around the world have often been poorly managed by public officials. It provides an overview of the unique difficulties facing underdeveloped countries and explains how these problems are related to monetary instability. One of the main functions of government is to provide a currency for its citizens. Money supplies were composed of practical commodities which had manufacturing applications as well as exchange usefulness. The chapter outlines possible reforms for promoting monetary stability in developing nations. Most developing countries have their own independent monetary systems. A number of developing countries in Central Asia, Latin America, Africa and the Middle East rely on petroleum or other hydrocarbon exports for most of their national income. The African country of Algeria has had real and monetary problems related to a reliance on oil and other hydrocarbons. Many developing countries rely exclusively upon copper for their national income.
