Debasement

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Debasement

The act of lowering the value of something, especially a coin. In the past, a government would melt coins down and mix them with a metal of lower value in order to create more coins of the same denomination. This inevitably caused inflation, though it is unclear how well these governments understood that. Because few currencies are now based on a precious metal, debasement it rare.
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References in periodicals archive ?
But at the end of the sixteenth century Mariana and Cervantes are concerned with the type of inflation occasioned by the return in Spain of authoritarian, or "man-made" debasement, something more akin to what earlier jurists like Buridan and Oresme had observed in fourteenth-century France.
And as the seventeenth century progressed, the revenue generated by various debasement schemes proved irresistible to government officials.
Adding to this, Sancho's phrase points up the brutal irony that his own slavery (as per Oresme's and Mariana's "debasement enslaves citizens") is what drives him to dream of enslaving others.
As discussed above, the historical record suggests that Gresham's Law was often violated in practice, i.e., debasements did not always drive out full-weight coin, but instead resulted in its continued circulation at a value exceeding its legal value.
The sort of "predatory" debasements modeled above were common during the early years of the Dutch Republic.
The much despised practices of bicquetteeren and steygeringhe can be seen as market responses to debasements. Following a debasement, people often chose to hold back full-weight coins and export them (possibly for reminting into debased coin).
The scrapping of debasement tactics represented a commitment to pure coinage whereby the state could claim a natural and immediate relation between face value and intrinsic worth.
13 The great debasement commonly describes a long-term policy inaugurated by Henry VIII lasting over a period from 1526 to 1551 rather than a single act of legislation.
54-68) and continuing into the early fourth century, currency debasement and inflation became the rule.
Fiscal strains led to increased money creation which for commodity monies means debasement in one or both of two forms: 1.
Befuddled by years of monetary-policy ineptitude and the seeming failure of drastic fiscal measures to stimulate economic activity, the Roosevelt administration turned to the treacherous financial alchemy of debasement in a desperate attempt to "reflate" the economy.
As this brief historical sketch indicates, the debasement of the U.S.