Home Forums Principles of Economics Alternatives for a country to avoid debasing its currency during times of war

  • Alternatives for a country to avoid debasing its currency during times of war

    Posted by Flavio on August 11, 2021 at 12:33

    Hi,

    I’m still learning and not able to find the answer to this just yet.

    What are the alternatives for a country to not debase its currency during times of crisis, war?

    Like, when the enemy’s tanks are rolling in? I’m thinking that there’s some game theory involved, that during war, every country ends up having to resort to currency debasement (i.e. forcibly extracting money from its population). Even though it’s worse for the collective, no country can afford not to do it.

    One hypothesis that I can think of is that said country with a hard currency (i.e. a country under the bitcoin standard) wouldn’t be in war in the first place.

    Thanks in advance for your thoughts!

    Flavio replied 5 months, 3 weeks ago 2 Members · 2 Replies
  • 2 Replies
  • Mike

    Member
    December 15, 2021 at 16:17

    Flavio,

    That is also my question!

    Check out Peter north, “local money” book or thomas greco, “end of money”.

    Also check out the Brixton pound project with Algorand foundation.

    Mike

    • Flavio

      Member
      January 9, 2022 at 16:00

      Interesting, thanks for sharing those! I started the Sovereign Individual now and will look into either of the books then. The shift from big government central planning toward individuals and smaller communities is much needed in times like this.