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28

Frederick II the Great, king IN Prussia 1740–1786 used to counterfeit currency of the Polish-Lithuanian Commonwealth (PLC) on a large scale, for profit and to economically weaken Polish state. Officially PLC wasn't at war with Prussia but the only reason that this and other hostile activities of Frederick the Great were unanswered by PLC was the weakness of ...


21

The US government alleges that this has occurred - see Superdollars. Very high quality counterfeit $100 bills flooded the US market. Although it may be that these were merely a way that the responsible institution was funding operations, it is commonly believed that these were also intended to cause inflation within the US by increasing the money supply. I ...


18

Financial Wikipedia answers: The guinea is a coin that was minted in the Kingdom of England and later in the Kingdom of Great Britain and the United Kingdom between 1663 and 1814. It was the first English machine-struck gold coin, originally worth one pound sterling, equal to twenty shillings; but rises in the price of gold relative to silver ...


15

During world war 2 , Germany carried out Operation Bernhard , one of the biggest currency counterfeit attempt in history , to destabilize the economy of Britain and the United States. The operation was named after(and started by) NSDAP member and SS Major Bernhard Krüger , who led the operation from a segregated factory built at Sachsenhausen concentration ...


13

I'll take a stab at this, although it really does deserve an economics stack exchange Short reason: Population growth relative to gold supply. Long reason: A gold standard is another way of saying that your money supply is inelastic. Each bank note is linked to a fixed amount of gold and in theory should allow you buy that amount of gold. As gold is ...


8

As stated, the question has a simple answer: no! In Rome the right to mint currency was strictly reserved to the emperor. The emperor might at times devolve the right to mint copper or silver (but not gold!) coins to certain favoured cities, but it was his to grant and his to withdraw. There were severe punishments for counterfeiters (don't remember ...


8

The reason for this involves the difference between wholesale and retail trade. Wholesale trade and banking was conducted in gold (guineas), retail in silver (pounds sterling). The reason for the price difference was to provide a commission. A common practice in England was to conduct wholesale business in trade auctions. The price would be quoted in ...


7

Most was circulated back into the community through Church charities and hospitals (scroll down to 'History of charity in the Church'). Some was taken by the state and thus became eventually owned by people (see Dissolution of the Monasteries: Continental Precedents for example). Some was converted into buildings, icons, frescos, statues and other forms of ...


6

During the American Civil War, the Union attacked the Confederacy in this fashion. While this was work of a private Union citizen; the work was tacitly permitted by the government. Considering the technological advantage the North had over the South; they could have done industrialised this strand of economic warfare with great ease. They only refrained ...


6

During the French Revolution, European powers (and displaced French aristocrats, known as emigrants ) opposed to the Revolution flooded France with counterfeit 'assignats' - paper currency, in an attempt to undermine the French economy after they had disposed of Louis XVI. Thomas Carlye: The French Revolution, a History Chapter 2.5.II: (One of several ...


3

Historically, the supply of gold has grown at the rate of 2% a year (through mining, new discoveries, etc.). That is too low a rate of growth to allow the world to grow at its desired pace of 3% or higher, and still maintain the price of goods at stable, to rising. (If gold, your "money supply" is growing at 2% a year, and goods at 3%, the price of goods ...


3

First imagine a world without any coinage, where all purchases and sales must be achieved through barter. Further imagine that there are well accepted equivalencies, between all goods so that an average ox is understood to be worth 10 average sheep, 8 average goats, etc. Three of those goods will of course be copper, silver and gold, so that there will be ...


2

Let's look at inflation first. "when the coins are too much altered, the result is inflation." When coins are altered, they are almost always debased - other metals are mixed with silver to allow the government to mint more coins with the same amount of specie. So if I have enough silver to produce 1000 coins, and I mix in 50% tin, I can now ...


2

There may be differnet reasons. An extract from the German Wikipedia article about German gold reserves: Die Bundesbank hatte das Edelmetall an den führenden Goldhandelsplätzen New York, London und Paris gekauft und dort belassen Germany (or better the Bundesbank) bought the gold at the leading markets (NY, London, Paris) and never transported it ...


2

In Present time pakistan is waging a proxy war with india, which includes destablising indian economy by printing larg sum of fake currency. Just search google with 'Pakistan Face currency ...


1

Some accounts, such as military ones, could only be settled in specie. In exchange for a note of hand, a banking house or network offers a more fluid form of cash. The note of hand is discounted: for every £100 of face value, only £85 are supplied. The note becomes due in a certain number of years. (Say 3 years). The bankers have to be paid in specie or ...



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