Encyclopedia of Early Modern History Online

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Paper money
(770 words)

In the early modern period, besides banknotes, which are promissory notes of the bank of issue, there was another form of paper money, so-called government paper money. Either this was issued by the state and given a compulsory rate as legal tender, or the state obligated itself to accept the money at the treasury at face value for certain payments such as taxes. Since the states frequently used this means of funding – for instance for financing war (War, financing of) – there was a danger of paper-money inflation. This could be offset only by debasement or demonetization of th…

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North, Michael, “Paper money”, in: Encyclopedia of Early Modern History Online, Editors of the English edition: Graeme Dunphy, Andrew Gow. Original German Edition: Enzyklopädie der Neuzeit. Im Auftrag des Kulturwissenschaftlichen Instituts (Essen) und in Verbindung mit den Fachherausgebern herausgegeben von Friedrich Jaeger. Copyright © J.B. Metzlersche Verlagsbuchhandlung und Carl Ernst Poeschel Verlag GmbH 2005–2012. Consulted online on 18 October 2021 <http://dx.doi.org/10.1163/2352-0272_emho_SIM_025243>
First published online: 2015
First print edition: 20200721



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