22 lines
742 B
Markdown
22 lines
742 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->
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# Paper Money
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## Definition
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Promissory notes issued by banks and bankers that serve as a substitute for gold and silver money in circulation. These notes are accepted as currency because of confidence that they can be exchanged for metal money on demand.
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## Source Chapter
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Book II, Chapter 2
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## Context
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Smith discusses paper money as a less expensive instrument of commerce that can replace gold and silver in circulation. He explains how paper money can reduce the expense of maintaining a country's circulating medium while still facilitating the same quantity of exchanges.
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## Economic Domain
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Exchange
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---
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