22 lines
708 B
Markdown
22 lines
708 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-1-chapter-04 -->
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# Debasement of Currency
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## Definition
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The deliberate reduction of the precious metal content in coins by rulers and sovereign states, allowing them to pay debts and fulfill obligations with less actual value while maintaining the same nominal value, defrauding creditors.
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## Source Chapter
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Book I, Chapter 4
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## Context
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Smith condemns this practice as an abuse of trust that systematically reduces the real value of currency over time, benefiting debtors at the expense of creditors and undermining the stability of commercial transactions.
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## Economic Domain
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Regulation
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---
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