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# Public Debt Reduction Through Debasement

# Definition

The practice of reducing the real value of public debt by decreasing the
precious metal content of coins while maintaining their nominal value, effectively
allowing governments to pay creditors with less valuable currency.

## Source Chapter

Book V, Chapter 3

## Context

Smith describes how nations have historically reduced their debt burdens by
debasing their currency, using the Roman example of reducing the copper content
of the As to pay debts with only a fraction of their real value.

## Economic Domain

Regulation

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