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http://www.lendinguniverse.com/ mortgage lenders wholesale In western European monarchies, the story was much the same. Henry VIII was known as “old coppernose,” because the silver on his coins wore off quickly, revealing the copper below. And while governments systematically debased the coinage, free enterprise did its bit. People clipped coins or shook them up in bags to collect the abraded gold scrapings. When monarchs made two coins out of one by mixing precious metals with base metals, they did it to finance their expenditures-to fight wars, keep up lavish courts, or build monuments. Currency debasement led to rising prices, not because the coins contained less gold but because more of them were struck and they were spent for goods and services. Prices had to rise because expenditures rose faster than the potential output of the economy. Coinage debasement wasn’t the only cause of inflation. There was widespread inflation in Europe during the sixteenth century after the discovery . of gold and silver mines in the Spanish possessions in America. Again prices went up because more coins were struck and they were spent ‘rapidly. Metallic coinages were seldom satisfactory, because the supply of money depended on the whims of monarchs and chance discoveries of mines. Coinage problems became unimportant only when paper money and bank deposits became the common form of money.
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