Modern limes – Liberation and Growth of the Money Supply. The Facts Presented in Monetary Units and Resulting Regulatory Needs

“As soon as Blaise Pascal[1] has convinced scientists about air pressure, it will be easy to deduct that the Archimedes push will also operate on any corpse put in gas and especially into air The theory will then be ready for hot air balloons to fly into the sky.”

– Gilles Godefroy[2]

From a monetary point of view, modem times start with the fall of the Berlin Wall, which can be seen symbolically as the final end of WWII or of the so-called “Cold War”. Since military budgets shrank for a while both in the western world and Russia, finance became the core topic of policy makers. If we had to be historians and explain in two sentences what happened, we would say that this starting period was a period of continuous war effort dedicated to scientific development primarily for weapons, with few human resources to use. It was also characterized by the dogmatic fight between the communist centralized economic model on the one side and the free-market economic model on the other. It has to be noted that in the common continuous war effort both were engaged in they started out with similar resources, both human and tangible, also dedicated to economic development. What brutally changed the pattern was, with the fall of the Berlin Wall, the liberation of a huge number of disciplined human resources for whom safety and comfort were a real achievement. Overall, better communication after the war let the citizens of both economic models compare their situation. The very different outcome over the transitional period between 1945 and the 1970s, with a continuous flow of human resources from the east towards the west, along with the overwhelming superiority of US monetary resources after WWII, were components in the liberation of money and basically explain the evolution of monetary regulation. The opening to a market economy of the entire Eastern Europe as well as China and their Dominion previously operating on a barter system changed the necessary volume of monetary instruments in the context of a fast-growing population.

Some significant population data (just estimates, besides the USA and EU)

Greek Empire (5th century BC)

3.5-15 million

Medic Empire (5th century BC)

50 million

Roman Empire at peak (2nd century AD)

100 million

China (18th century)

100-200 million

China 2013

1360 million

France (18th century)

24 million

France 2013

65.7 million

UK (18th century)

6 million

UK 2012

63.7 million

USA 2013

316 million

EU (28 countries currently)

510 million

India 2013

1224 million

World

7111 million

Note: The figures for ancient times are estimates from various specialized sources. Indian, US, EU and German figures for the 18th century do not represent the same geographic sovereignty and so are not given because they are not sensible of comparison. For the same reason, Greek and Medic figures are provided (Greece and Iran in modern times).

  • [1] 17th-century French philosopher and scientist.
  • [2] Godefroy, G., Mathematics. Directions for use. p. 70. See References.
 
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