1. Provide a definition and a few examples of commodity money. 2. Why did Homeric heroes eschew money? 3. Explain how emperor Nero debased money and initiated inflation? 4. What was “wrong” with...

1. Provide a definition and a few examples of commodity money.
Commodity money are the goods which are used as money and also possess some intrinsic value i.e. when they are sold they have some value. The value is derived from the commodity is made of.
Example: Gold, Silver, Copper, Salt, cigarettes, barley, alcohol etc.
2. Why did Homeric heroes eschew money?
In Homeric Culture the most important thing was the Honour. But to the Homeric Hero the Honour was paramount. He would do anything to protect his reputation until his death. The Homeric hero is believed to live by strict social and cultural norms to guide life only in battlefield and thus Homeric heroes eschew money.
3. Explain how emperor Nero debased money and initiated inflation?
In 54 CE when Nero was the emperor in Rome, Roman currency for the first time lost its value. Prior to that silver coins were popularly used in Rome as money. But, in order to mint more money, he tampered with the quality and purity of silver coins. Silver level was dropped approximately by 10%. But soon the silver content in the coins remained only 50%.
This led to what is called as “Crisis of the Third century’ and Rome experienced hyperinflation since the purity of silver coins further dropped. Roman faced multiple problems like economic problems, invasion and civil unrest. The trade collapsed and exports and imports were not possible....