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This actually happened in Iraq after the first Gulf War: http://en.wikipedia.org/wiki/Iraqi_Swiss_dinar http://en.wikipedia.org/wiki/Iraqi_Swiss_dinar . Since t
by jplewicke 17y ago
This actually happened in Iraq after the first Gulf War: http://en.wikipedia.org/wiki/Iraqi_Swiss_dinar http://en.wikipedia.org/wiki/Iraqi_Swiss_dinar . Since the government was no longer printing the older currency, it was then immune to inflation by Saddam's government. The old currency appreciated against the newer, inflated currency until we deposed Saddam. It's amazing how little you need to back a currency, and how unbacked ones can be stronger than fiat currency.
- eru 17y agoA fascinating example. I recently talked with someone about fiat currencies being backed by the taxation power of the issuing state, to get their worth. It seems that once the system is booted this help may be no longer necessary.
- wmf 17y agoDidn't the same situation exist in Neuromancer where all governments had abandoned paper money but criminals continued to use it?
- joeyo 17y agoYet another example of Gibson's disturbing prescience.