The Economics of Money and Banking Chapter 2 Money and Monetary System >>Monetary Thought:The Origin of Money 1 Ancient China Money and the The theory of invention:money was invented by the state or ancient sages. -----SHAN Qi (524 B.C.)and GUAN Zi (685 B.C.) The theory of exchange convenience:money is chosen collaboratively as a solution to problems that occurred in barter exchanges. ---- e payment System SI Magian(104 B.C.and LUO Mi(Song Dynasty) The theory of wealth preservation:money came into existence for the sake of preserving,measuring and exchanging wealth. The same theories also existed in western countries:Adam Smith etc. 5 GUO YING SEM TONGJI UNIVERSITYThe Economics of Money and Banking 5 GUO YING SEM TONGJI UNIVERSITY 1 Monetary Thought: The Origin of Money  The theory of invention: money was invented by the state or ancient sages. ------ SHAN Qi (524 B.C.） and GUAN Zi (685 B.C.) Money and the payment System Ancient China  The theory of exchange convenience: money is chosen collaboratively as a solution to problems that occurred in barter exchanges. ------ SI Maqian (104 B.C.） and LUO Mi (Song Dynasty)  The theory of wealth preservation: money came into existence for the sake of preserving, measuring and exchanging wealth. The same theories also existed in western countries: Adam Smith etc. Chapter 2 Money and Monetary System