History of Money

Posted: February 21st, 2020

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History of Money

In Chapter 5 of the Nichomachean Ethics (Book V), Aristotle ponders considerably on the concept of reciprocity in relation to economic matters, particularly in discovering the economic value of money in relation to different commodities. Over the years, the discourse on reciprocity has always exhibited concerns associated with interpretation. This is based on its dual nature as a type of justice as well as a law of economics. In this case, the notion of reciprocity mostly correlates to the economics of money. Even though Aristotle attempts to establish a conjecture based on economic value, he clearly illustrates the complexity involved in the computation of relative values for different goods with disparate levels of quality. Aristotle does not express concerns based on the provision of an analysis concerning the ‘real’ worth of commodities while being independent on the prices imposed on them within the marketplace. In his perspective, prices established within the marketplace comprise an inherent political or social assessment of values of disparate producers. Hence, for the reason established above, reimbursing the price for the commodity, be it a shoe or a house, is an action of justice as well as a means towards the accordance of respect towards the reinforcement of the city’s community. On the other hand, the notion of reciprocity is represented as a corrective measure aimed at rectifying a social imbalance, particularly the reimbursement of a debt. Evidently, an individual is operating in respect to the asset of justice when he engages in the payment of a debt. However, for one to carry out such a moral act, he or she does not have to engage in complicated abstract computation of the fixed values for disparate products. This notion of repayment stays within the sociopolitical function of reciprocity and its responsibility in the maintenance of the community.