ABSTRACT
In this chapter, the authors deal with each of the three aspects of the use of money, i.e. the rise and complexity of institutions, trust, and monetary policy. Besides the increasing complexity of financial instruments, a factor important for maintaining a monetary system is trust, i.e. the confidence that money fulfils its function. The real breakthrough of coins with all functions of money took place in the Greek world when, after silver and gold, bronze coins were introduced which far exceeded their nominal value and thus were really fiat money. The development of money, more importantly the commodity of money, indicates a clear decline of backing by value in favour of backing by trust in the government or market. Money fulfils a crucial role in economic development. The authors observe the use of copper and bronze coins very early, later supplemented by the issue of paper money representing bronze coins.
