The Big Problem of Small Change
Thomas J. Sargent|François R. Velde
The Big Problem of Small Change offers the first credible and analytically sound explanation how a problem that dogged monetary authorities for hundreds years was finally solved. Two leading economists, Thomas Sargent Francois Velde, examine evolution Western European economies through lens one classic problems history--the recurring scarcity depreciation small change. Through penetrating clearly worded analysis, they tell story technologies, doctrines, practices evolved from 1300 to 1850; formula devised address an age-old dilemma without causing inflation.

	One big had long plagued commodity money (that is, literally worth its weight in gold): governments were hard-pressed provide steady supply change because high costs production. ensuing shortages hampered trade and, paradoxically, resulted inflation After centuries technological progress limited counterfeiting, nineteenth century replaced use until then with fiat (money not equal value claimed it)--ensuring secure flow But this all. By solving problem, suggest modern states laid intellectual practical basis diverse forms make world go round today.

	This keenly argued, richly imaginative, attractively illustrated study presents comprehensive history theory authors skillfully convey intuition underlies their rigorous analysis. All those intrigued by will recognize book standard it is.
Journal of Money, Credit and Banking