Ascent of Money | MyPaperHub

According to the video, the term bank came from Italy especially in the world of finance associated with the Jews that lived in Venice. It has come after great developments in mathematical computations developed by Fibonacci where he introduced the Arabic numeral system that was far simpler than the roman system that was dragging Italy and behind as far and finance is concerned. Jews living in Italy were greatly discriminated by Christians who confined them to ghettos. At this time money lending had already taken shape. However, for Christians, money lending was possible, but it was a sin to offer a person a loan at interest.

This factor greatly placed Jews at a better position in the world of finances where they would offer Christina loans at interest. The process of the computation of the mathematics would take place behind closed doors in the ghettos of Venice, and this is where the term bank rose from.

The development of lending in Italy was made legitimate by the Medici family that developed the first official banking system. At the time charging interest and criminal actions against defaulters were highly regarded as a sin and illegal. However, the Medici family embarked on a system of commissions of foreign exchange and interest that was hidden in the mathematics. They also developed a model of increasing is scale in order to cushion the effects of defaulters which is similar to the model developed by the Rothschild family.

The first episode shows how banks operate and are good for understanding how important aspects of banking developed as well as the principles they were built upon. In comparison to the world of today, the aspect of interest charged on loans is a very important factor, and governments play a great role in regulating it to ensure that the public is protected.


 

References

Ferguson, Niall. The Ascent of Money: A Financial History of The World by Niall Ferguson Epsd 1 5 Full Documentary. 2013. https://www.youtube.com/watch?v=fsrtB5lp60s.

 

 

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