The Evolution of Money: A Story of Constitutional Nullification

Abstract

In a free economy, the market rather than the law dictates which form of money is used in commercial transactions. The law is still needed to recognize monetary conventions of the market and, sometimes, to clean up the mess the market leaves behind its monetary adventures. But rarely has the development of money been the pure artifact of governmental policy or political decision. Money is a living creature of the market and its form changes to facilitate commercial transactions in an ever more efficient, convenient, and safe manner. As such, most innovations in monetary practices are attributable to the decisions of the market.

Keywords: money, monetary clauses, paper money