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outside money (E4)<br />A monetary asset of the private sector that is a liability of a government, assuming government demand does not fall as its total debt rises in real terms. Gold coins under the GOLD STANDARD, currency and bank reserves under a FIAT MONEY system and HIGH-POWERED MONEYare the major examples.<br /><em>See also:</em> inside money
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coinage (E4)<br />Pieces of metal of a standard size and weight stamped by a sovereign power to give them the status of money. Coins were first used as money by the Lydians (Greek inhabitants of what is now West Turkey) in the seventh century BC. The first coins were made of electrum, a natural alloy of gold and silver. Silver, bronze and copper were later used in Ancient Greece and the Roman Empire. Copper coins, used for small transactions, were issued with a monetary value in excess of the value of metal used, establishing the principle of token money, which is the nature of coinage today. The first problems of coinage, clipping and forgery, were solved by a change in production method from hammering to milling to ensure a standard size. The second problem, the inconvenience of transporting it to carry out large financial transactions, was remedied by the use of banknotes.
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