Economics Bi-weekly essay #1 Religions role in economics and the Medic’s role in banking Economics word count: 533 In the early years of economics religion played a major role in banking. The Medici as well were a big part of establishing the modern world of banking as we know it now. Religion in economics played the role of determining who a person was able to lend money to. The Medici were a big part of establishing the modern world of banking as we know it today because they were responsible for the development of the double-entry book keeping system for tracking credits and many other use full quenches that are still used today.
The role of religion in early economics was very large. Religion played a large role in lending and borrowing money. The Jews were a huge part of lending money. Jews were not allowed to lend money to other Jews as well Christians were also not allowed to lend money to someone of the same religion. They were not able to lend to someone of the same religion because it was considered a sin. This resulted in no way for them to get money when needed. As a result of this Christians stated to go to Jews to barrow money. This was allowed they were able to lend them money with interest as well.
They Jews were willing to lend to the Christians but mostly preferred if the person was credit worthy. If a person was credit worthy it meant that they were able to be trusted that they would give the money back, if the Jews thought that a person was credit worthy they would lend the money. The Medici were a great influence in the way that banking is run today they invented the double-entry book keeping system for tracking credits and debits and many other ways they were an influence. The Medici bank, Just like any one of the modern banks today, held deposits, made loans, dealt in bills of exchange, changed none and conducted business abroad.
The double-entry book keeping system for Religions role in economics and the Medic’s role in banking By catalinagarciaisbombdiggity different way because of the new technology but it was a help full tool and without this it would be hard for banks to tell were money in from and which account it goes into. A double-entry book keeping system for tracking credits and debits was “It’s called “double-entry’ because each transaction is recorded in at least two accounts: a source account, or where the money comes from, and a destination account, or where the money goes”.
All of the techniques that the Medici bank established in the early years of banking were carried on and are still used in banks all around the world. In conclusion economics and religion were very closely tied together in the early years of banking. Religion was as well a problem in constricting who a person can lend and barrow money from because of the religion they were and the church monitoring and declaring it a sin if you barrow money form someone of the same religion. The Medici in early banking were a big influence on the way that world banking is today thanks to the techniques that they established.