Paper Promises: The Birth of Fiat and the Fall of Trust

When paper money was introduced in liberal democracies in the 18th century, there was strong concern among formitable thinkers like Bruke, Hume, Jefferson, and others, who feared that the adoption of fiat currency would undermine the moral and economic fabric of society. This podcast dives into the historical debates surrounding the introduction of paper money, exploring how these intellectuals warned of inflation, financial instability, and the erosion of trust in monetary systems. We’ll examine their arguments, the political and economic contexts of the time, and how their predictions align—or conflict—with the realities of modern fiat economies.