I'm generally very interested in economics matters, although i'm not an economist nor have in depth knowledge on the subject. I have a question about how money is shared throughout the world.
I'm thinking on a primitive level. Say there are 10 countries in a world. I understand that each country can have a specific deposit of gold. But, money is not gold. It's representation of gold (and what bankers love as i understand :P).
Now, if we operate on money, which represent gold, what are the needed operations held in order to make sure that each country has a beginning wealth described by its natural gold possession. Imagine that this question is asked for day 0 of the newly operated economy for this example. A world that just rises and 10 countries have y amounts of gold each.
Moreover, i suppose that what makes gold valuable is scarcity(kind of demand/supply primitive). But why gold ? Why not diamonds or other minerals ?
Who creates the procedures and who supervises them in modern worldwide economy ?