Origins of Modern Money: Insufficient Gold

A dramatic transition took place in 18th century England, when insufficiency of gold for commerce led to the creation of credit money - only partially backed by gold. The Bank of England led the way, showing how to reliably print paper money, while maintaining confidence in convertibility, so as to create public trust. Later, this model was replicated all over the world, and continues to be the basis of modern money. Studying this history teaches us unique lessons about money, not available even in Ph.D. textbooks, or latest specialized research journals. This is lecture 10 of a series on A New Approach to Islamic Economics. See course website at http://bit.ly/IslamicEcon2023