Money in traditional economics is defined as any medium of exchange that can be accepted. Medium of exchange that can be any object that can be accepted by everyone in the community in the process of exchange of goods and services.
In modern economics, money is defined as something that is available and generally accepted as payment for the purchase of goods and services as well as other valuable property as well as for debt payments. Some experts also mentioned the function of money as a payment delay.
The existence of money provides an easier alternative transaction that is more complex than barter, inefficient, and less suitable for use in the modern economic system because it requires people who have the same desire to make the exchange and also the difficulty in determining value. Efficiency obtained using the money in the end will boost trade and division of labor which would then increase the productivity and prosperity.
At first in Indonesia, the money-in this currency, issued by the Government of the Republic of Indonesia. However, since the issuance of Law no. 13 of 1968 article 26, paragraph 1, the government's right to print money withdrawn. The Government then set a Central Bank, Bank Indonesia, as the only institution that has the right to create currency. The right to create money is called the right oktroi.
from wikipedia
