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Comment by gunshai

An interesting side effect of clipping was essentially the discovery of Gresham's Law. The Bad Money drives out good money. While essentially understood/internalized by the merchant class plebiscite(heh) for thousands of years, wasn't formalized until the mid 1800s.

For clipping it means that when new coinage is minted that money is typically horded and the clipped coins are kept in circulation because they are deemed less valuable then their nominal value (the initial weight of the coin).

Why would someone use something more valuable in an exchange when the thing that's less valuable will suffice?

Gresham's Law would end up plaguing monarchy's and various governments for millenia and still to this day really.

We vastly under appreciate the very basic technology used to solve problems that existed for pretty much the entire world for thousands of years.

parent gunshai 2 years ago

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