So, paper money, essentially? That is more or less where they came from. Contracts and bonds. Or more generally, promises for exchange of value.just have the royal family print official "I.O.U"
Not essentially, literally.So, paper money, essentially?
How does this fix anything? They can mint new money, or use an alternative currency for a bit. But the actual problem is that money has just disappeared from people's possession. How would they distribute the new money to people affected? What's stopping people from lying about how much they lost?Ironically this revolution is easy to stop: just have the royal family print official "I.O.U" (or whatever you want to call them) with a nominal value of one gold coin (or more as needed) and make them viable by law, so that there is roughly a 1:1 correspondence between a person's possession and the debt the royal family owes.
As real gold coins flow back to the country the people can get back their credit or simply keep use the subsitute until it's deemed invalid.
This is, by the way, approximately how the current day monetary policy works, minus some international policies details.
It fixes that it takes less time to write a piece of paper and stamp it than to mine and gather enough gold to mint all those coins again, meaning people will have their money back in a few days versus a few months or even years. Remember that the real gold coins have been expended gor goods in the meantime and the fake coins substituted them.How does this fix anything? They can mint new money, or use an alternative currency for a bit. But the actual problem is that money has just disappeared from people's possession. How would they distribute the new money to people affected? What's stopping people from lying about how much they lost?
I lost 100,000,000 gold coins when everything turned to dust. The field behind my house, all coins. Under my fingernails? Coins. Coins under the bed, too, and on my children's feet. Trust me, I am telling the truth. I'll just take that I.O.U...How does this fix anything? They can mint new money, or use an alternative currency for a bit. But the actual problem is that money has just disappeared from people's possession. How would they distribute the new money to people affected? What's stopping people from lying about how much they lost?
That's how tax forgiveness worksI lost 100,000,000 gold coins when everything turned to dust. The field behind my house, all coins. Under my fingernails? Coins. Coins under the bed, too, and on my children's feet. Trust me, I am telling the truth. I'll just take that I.O.U...