As this brief historical sketch indicates, the debasement of the U.
I like to engage the students in this activity on the first day of the semester, in order to both shock the erstwhile ignorant students into awareness of and curiosity about debasement and inflation, and indicate that monetary economics can involve fun, beyond-the-book forms of learning.
The gradual path of debasement; debasement is not a one-shot event, but a long-term, step-by-step process.
Then, early in the De moneta chapter, Mariana states that when a king practices monetary debasement, he is a tyrant:
Thus, comparing the logic of the respective chapters on money and the tyrant in the 1605 edition of De rege et regis institutione, we have an equation: if monetary debasement is tyranny, and if tyranny is slavery, then monetary debasement is slavery.
Rather than the oversupply of silver and gold from the New World, which had caused these to flow away from Seville to the rest of Europe through existing arteries of financial exchange, it was now debasement by decree, over-issuance of copper-based money, known as vellon, which contained at most a few grains of sitver, and subsequent official extractions of this same silver, substituted by copper during a series of re-stampings, which were all pushing precious metals directly out of circulation and replacing them, a la Gresham's law, with bad money.
Prior to the founding of the Wisselbank, however, the Dutch economy suffered from inflation, due to a succession of debasements in its stocks of coin.
debasements did not always drive out full-weight coin, but instead resulted in its continued circulation at a value exceeding its legal value.
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.