SOURCE: Bank of International Settlement (BIS):
BIS Annual Economic Report 2018, page 92:
“… historical experience also made clear an underlying trade-off, for
currencies that are supplied flexibly can also be debased easily.7
Sustained episodes of stable money are historically much more of an exception than the norm. In fact,
trust has failed so frequently that history is a graveyard of currencies. Museums
around the world devote entire sections to this graveyard – for example, room 68
of the British Museum displays stones, shells, tobacco, countless coins and pieces of
paper, along with many other objects that lost their acceptability as exchange and
found their way to this room. Some fell victim to the expansion of trade and
economic activity, as they were rendered inconvenient with a larger scale of use.
Some were discarded when the political order that supported them weakened or
fell. And many others fell victim to the erosion of trust in the stability of their value.
History proves that money can be fragile whether it is supplied through private
means, in a competitive manner, or by a sovereign, as a monopolist supplier. Bankissued money is only as good as the assets that back it…”