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Before the advent of fiat currency, inflation wasn't really much of an issue, so loaning someone X amount of money and getting paid back the same amount of mone
by u801e 4y ago
Before the advent of fiat currency, inflation wasn't really much of an issue, so loaning someone X amount of money and getting paid back the same amount of money didn't result in a loss. With inflation, interest at a minimum would need to match inflation to not lose money.
- readthenotes1 4y agoMy understanding is that you are wrong. At least in the United States it had a dual metal standard and use that to provoke inflation. Ignoring before the Fed, we have https://observationsandnotes.blogspot.com/2011/03/100-years-of-inflation-history.html?m=1 https://observationsandnotes.blogspot.com/2011/03/100-years-...
- rexpop 4y agoIt's very difficult, in my recollection of Graeber's 5,000 Years of "Debt"[0], to find a period of time "before fiat currency," during which "loaning someone money" was even possible. As I recall, what we recognize as currency has been, throughout most of history, minted exclusively by states in order to furnish armies. Before that, what passes for currency doesn't, largely, function in any way analogous to our use, today. 0. https://en.wikipedia.org/wiki/Debt:_The_First_5000_Years https://en.wikipedia.org/wiki/Debt:_The_First_5000_Years