The origins of money, and their relationship with the broader development of exchange, commerce (standardization), and finance, have received new attention by scholars spanning economic and commercial history, archaeology, and anthropology in recent years. In this paper, we identify testable hypotheses derived from four broad theoretical traditions: orthodox, Chartalist, trade, and new institutional economics. To compare the theories, we derive findings from archeological, numismatic, and inscribed evidence from peripheral Europe during the first eras in which archaeology can be supplemented with relevant historical and archival research: the late Iron Age. More specifically, we analyze the comparative development of commerce, standardization, and financial sophistication, using three sets of data analyzed in this way for the first time here. Our first empirical exercise is a qualitative analysis of long-term monetary, commercial, and financial developments in the under-studied periphery of Europe. Second, we test hypotheses related to standardization of earthenware containers for commercially-traded goods. Our third inquiry develops a period-appropriate approach to industry analysis (also known as asset allocation at the industry level), and proposes a capital market line diagram for Macedonian Dynasty-era Byzantium. We conclude with suggestions for comparing the four theories using archaeological, historical, and anthropological data from other times and places, with appropriate concomitant dissemination of the actual, historical roots of money in broader perspective.

First Author: Thomas Hall

Keywords:
Commerce
Exchange
Economics
Markets
Commodity Money
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