Money in traditional economics is defined as any medium of exchange that can be generally accepted. Medium of exchange that can be any object that can be accepted by everyone in the community in the process of exchanging goods and services. In modern economics, money is defined as something that is available and generally accepted as a means of payment for the purchase of goods and services as well as other valuable property and for payment of debt.
Some experts also mentioned the function of money as a means of payment delay.
The existence of money provides an easier alternative transactions than barter is more complex, inefficient, and less suitable for use in the modern economic system because it requires people who have the same desire to exchange and also the difficulty in determining the value. Efficiency is gained by using money in the end will encourage trade and division of labor which then will increase the productivity and prosperity.
At first in Indonesia, the money-in this case-Currency issued by the Indonesian government. But since the issuance of Law No.. 1968 13 years of article 26 paragraph 1, the right of governments to print money revoked. The Government then set the central bank, Bank Indonesia, as the only institution entitled to create money Kartal. The right to create money is called oktroi rights.
