In God we Trust, our currency is another matter

Since we’ve been talking a bit about currencies, it’s interesting to recall old-fashioned notions of the gold standard and the 1 billion mark note seen in Weimar Germany during the 1920s. In an interesting post, the FT’s Undercover Economist reminds us that a currency only has value as long as those who desire goods think it does. If the consumer doesn’t trust modern currencies to deliver value then they likely won’t, which is a bit of a downer given the state of the dollar these days.
The inspiration for the post? A new 10 million dollar note issued in Zimbabwe, …read more