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Message: <blockquote data-quote="Dannyalcatraz" data-source="post: 5768603" data-attributes="member: 19675">Even when you started with more modern monetary practices- classic example being the Italian merchants of the middle ages- the actual currency was tied to precious metal reserves.  The metals were only transferred between moneylenders on monthly or quarterly bases.  The paper that circulated- promissory notes, checks, and even paper currency- would remain redeemable in hard money.  This was true even for some time after a regime change, unless the new regime was trying to actively inflict economic hardship upon the conquered.  But in times of strife, those stand-ins for metal coinage become less popular with merchants.Which is why, even to this day, precious metals and hard currency trend upwards in demand in times of strife.</blockquote>