I checked the history (2000 years) of money in my country and a few others the other day, and it was hilariously similar. It went something like this:
- People bartered
- People started trading with copper coins, copper mining and coinage were hard work. Some kings managed, some didn’t, some switched to cheaper and worse quality material, their economy collapsed. Next king went back to use copper for coins.
- One king mandate paper money, kill everyone who has coins and confiscate all coins and gold. People infuriated: “This is a piece of paper! No intrinsic value”.
- Said king printed too much money, hyperinflation, everything collapsed
- New king came into power, back to copper coin, hard work and rare material but things look good for a while for citizens
- Modern government came, kicked said king’s ass, do a paper/coin combination.
- Hyperinflation, said government cut a few zeros on the bank notes, confiscate all gold from citizens to fund wars.
- Said government got kicked by a new government. Rinse and repeat.
It’s almost a comedy, and utterly similar among the countries I’ve looked at. What’s the story of your country?