Easy Money

"A sweeping new history of the American origins of modern money. Economists debate endlessly the nature of fiat monetary systems-coins and bills whose value is guaranteed by a government or other authority. But the actual origins of these fiat currencies have received little attention. With Easy Money, economic historian Dror Goldberg tells the origin story for fiat currency in North America (and maybe beyond): the little-known example of the Massachusetts colony at the end of the 17th century. As the young colony grew into passive self-governance, and as its economy became increasingly complex, the need to formalize a smooth exchange emerged. Printing local money followed. Goldberg's story illustrates how colonial Americans invented modern money by shifting money's foundation from intrinsically valuable goods to the authority of the state. Whereas other governments had tied currencies unit to gold (and would continue to do so until the Great Depression and beyond), Massachusetts tied its local money to the assurance of a government: This money came from the state treasury, and it's the only currency you can use to pay for x things, so use this money. Goldberg's narrative traces how this happy accident has grown into a worldwide monetary system in which, monetarily, we are all Massachusetts. As Goldberg illustrates, the road to fiat currency has not been linear. Weaving monetary economics and American history, Easy Money is a new, highly novel starting square for the modern history of monetary systems"--