Lessons from 1620s show how trust in money shapes society
Money is a social agreement where people trust that others will accept it as payment. Central bank money has been the most stable form of money over time. Lessons from public deposit banks in the 1600s show that establishing trust in money is crucial for preventing economic crises. These banks helped stabilize the value of money during a period of hyper-inflation in Europe, setting the stage for modern central banks.