Money is any object or record, that is generally accepted as payment for goods and services and repayment of debts

in a given country or socio-economic context.[1][2][3] The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally, a standard of deferred payment.[4][5] Any kind of easily verifiable record serves these functions as well as an object (an "object" that is taken as money actually serves as just a type of secure record), and "digital money" that exists only as secure records in computerized files, is now the most common form of money. Money originated as commodity money, but nearly all contemporary money systems are based on fiat money.[4] Fiat money is without intrinsic use value as a physical commodity, and derives its value by being declared by a government to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private". The money supply of a country consists of currency (banknotes and coins) and demand deposits or 'bank money' (the balance held in checking accounts and savings accounts). These demand deposits usually account for a much larger part of the money supply than currency.[6][7] As noted, bank money is intangible and exists only in the form of various bank records, but still serves as money.[8]
Money is also called many other names, like currency or cash. Most of the time a state or a government prints paper money and makes coins at a special place called a mint.

Philippine money multi-colored threads woven into the fabric of our social, political and economic life. From its early bead-like form to the paper notes and coins that we know today, our money has been a constant reminder of our journey through centuries as a people relating with one another and with other peoples of the world.

Pre-Hispanic Era

Trade among the early Filipinos and with traders from the neighboring islands was conducted through barter. The

The pesos fuertes. a crude bronze or copper coin worth about one centavo. Revolutionary Period (1898-1899) . the El Banco Espanol Filipino de Isabel II. The cobs or macuquinas of colonial mints were the earliest coins brought in by the galleons from Mexico and other Spanish colonies. small bead-likeb gold bits considered by the local numismatists as the earliest coin of the ancient Filipinos. Spanish Era (1521-1897) Three hundred years of Spanish rule left many indelible imprints on Philippine numismatics. and gold barter rings.inconvenience of barter later led to the use of some objects as medium of exchange. was the first coin struck in the country. Philippine money was a multiplicity of currencies that included Mexican pesos. invariably found its way into these objects that included the piloncitos. The silver dos mundos or pillar dollar is considered one of the world¶s most beautiful coins. were the first paper money circulated in the country. which was plentiful in many parts of the islands. Gold coins with the portrait of Queen Isabela were minted in Manila. At the end of the Spanish regime. Alfonsino pesos and copper coins of other currencies. Silver pesos with the profile of young Alfonso XIII were the last coins minted in Spain. issued by the country¶s first bank. Gold. Coins from other Spanish colonies also reached the Philippines and were counterstamped. The barilla.

Beginning May 1918. The renaming of El Banco Espanol Filipino to Bank of the Philippine Islands in 1912 paved the way for the use of English from Spanish in all notes and coins issued up to 1933. the Philippine Republic of 1898 under General Emilio Aguinaldo issued its own coins and paper currency backed by the country¶s natural resources. The American Period (1900-1941) The Americans instituted a monetary system for the Philippine based on gold and pegged the Philippine peso to the American dollar at the ratio of 2:1. The coins issued under the system bore the designs of Filipino engraver and artist. Melecio Figueroa. Coins in denomination of one-half centavo to one peso were minted.Asserting its independence. The US Congress approved the Coinage Act for the Philippines in 1903. 2 centimos de peso copper were also issued in 1899. One peso and five peso notes printed as Republika Filipina Papel Moneda de Un Peso and Cinco Pesos were freely circulated. treasury certificates replaced the silver certificates series. and a one-peso note was added. .

on the other hand. . Having gained independence from the United States following the end of World War II. and partially redeemed after the war.The Japanese Occupation (1942-1945) The outbreak of World War II caused serious disturbances in the Philippine monetary system. Provinces and municipalities. issued their own guerrilla notes or resistance currencies. The Japanese Occupation Forces issued war notes in big denominations. most of which were sanctioned by the Philippine government in-exile. The Philippine Republic A nation in command of its destiny is the message reflected in the evolution of Philippine money under the Philippine Republic. Two kinds of notes circulated in the country during this period. the country used as currency old treasury certificates overprinted with the word ³Victory´.

a new set of coins and notes were issued carrying the logo of the Bangko Sentral ng Pilipinas. In the 70¶s. The new design series of banknotes issued in 1985 replaced the ABL series. which were printed at the Security Printing Plant starting 1978. the Ang Bagong Lipunan (ABL) series notes were circulated. Ltd.. Europe countries Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Greece . the first currencies issued were the English series notes printed by the Thomas de la Rue & Co. The Filipinazation of the Republic coins and paper money began in the late 60¶s and is carried through to the present. These series featured national heroes and species of flora and fauna. in England and the coins minted at the US Bureau of Mint. Ten years later.With the establishment of the Central Bank of the Philippines in 1949. A new wave of change swept through the Philippine coinage system with the flora and fauna coins initially issued in 1983.

Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom .

Albania Andorra Armenia Azerbaijan Belarus Bosnia and Herzegovina Georgia Liechtenstein Moldova Monaco Montenegro Norway Russia San Marino Serbia Switzerland .

Ukraine Vatican City State Croatia Former Yugoslav Republic of Macedonia Iceland Turkey NORTH AMERICAN COUNTRIES Antigua and Barbuda The Bahamas Barbados Belize Canada Costa Rica Cuba Dominica The Dominican Republic .

El Salvador Grenada Guatemala Haiti Honduras Jamaica Mexico Nicaragua Panama Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Trinidad and Tobago The United States AUSTRALIA New South Wales Victoria .

Queensland South Australia Tasmania Western Australia Northern Territory .

Australian Capital Territory Norfolk Island Christmas Island Cocos (Keeling) Islands Lord Howe Island ANTARCTICA .

3. Exchange Standard: If any country keeps the value of standard coins fixed in terms of some foreign money for purposes of foreign trade. 2. it will be called paper standard. Example of commodity standards: monometallic / metallic coin standards metallic exchange standard bimetallic standard There are some pros and more cons. 1. Paper Standard: Where the money of the country is not convertible directly or indirectly into any metal. the monetary standard is called exchange standard. metal reserves may expand excessively. monetary standard will be called bimetallism. If one metal is the standard that monometallism. Under this system a ratio is fixed by law between the values of these two metals. Monometallism: If one metal is the ultimate measure of value in the country standard will be metallic. However. . If that metal is gold it will be called gold standard similarly if that is silver it will be called silver standard.MONETARY STANDARDS 1. There are evidently problems with these standards since we have discarded them as the monetary standard of choice. On one hand it does restrain the government from excessively expanding the money supply because MS is driven by physical availability of metal not political experience. Bi-Metallism: When two metals are standard metals. or conversely contract when the economy needs liquidity to grow. Monetary Standards 4. The Commodity Standard This standard exists where the value of monetary units equal the value of specific amounts of commodity (for example gold). One inherent problem for the bimetallic standard is described in Gresham's Law.

e. The public has to accept the standard since the paper itself isn't actually worth anything--it's an abstraction. the process may be too slow. There are two basic monetary standards. This system only works because the government values the legal tender and the public accepts the standard. Cost of producing metals is inversely related to general level of prices (it provides stability to economic output and prices).Pros also include the intrinsic value of silver and gold. This monetary standard the 'creature of the state' created by the government exists. massive hyperinflation). (Another term is 'fiat' money --> legal tender). Inconvertible 'managed' paper standard. . however. Most are familiar with the second since it remains predominate in developed economies. Questions and comments are as always welcomed. It fails when the government does not exhibit proper economic restraint and responsibility (i. The answer? Fiat money (paper). 2.