The Role of Money in Indian Economy


Humans have always been in search of things that will make life easier, pleasant and worth living. The primitives produced a few things but wanted numerous other things to satisfy their desires. How would they consume what they did not directly produce? Farmers used to produce foodgrains, fruits and vegetables. But they also needed footwear, furniture and gold ornaments. How could they procure these? The easiest option was to rob those goods. But they gradually realized that such an unsocial method of getting things was undesirable—it could only lead to chaos and confusion.

Having found that force was not a good way to get the goods they did not produce, they thought of ‘exchange’. If a farmer ...

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