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In other words, there is need for “foreign exchange” transactions—exchanges of one currency for another.
Markets go back a long time—in English law, the concept was recognized as early as the 11th century—and it is interesting to compare today’s foreign exchange market with historical concepts. More than one hundred years ago, Alfred Marshall wrote that “a perfect market is a district, small or large, in which there are many buyers and many sellers, all so keenly on the alert and so well acquainted in one another’s affairs that the price of a commodity is always practically the same for the whole of the district...
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