If you were shown a paper banknote with ‘The Japanese Government’ printed on top, albeit in English, and was for a sum of 500 pesos, you would probably be left scratching your head wondering from where this strange money came. A sensible person would presume it was just some kind of novelty; in a sense,…
Over the past two thousand years, commerce has transitioned from using metal coins as the principal medium of exchange to using paper banknotes. Paper currencies started off as peculiar local institutions, often conceived as a type of debt obligation, and served as stand-ins for actual coins. Today, they have become the universal norm and are…
Among the basic functions of a currency is to serve as a medium of exchange. In ages past, gold and silver fulfilled this role and made up much of the world’s currency. Today, most currency is paper money, either pegged to another currency or backed by nothing in particular. However, it is conventional wisdom that…
