1. The Nature and Necessity of Paper Currency
... inner trade within the colony. He states that a lack of money to conduct trade within the province carries a heavy cost because the alternative to paper money is not gold and silver coins but exchanging goods. Which then leads to the local exchange cost to increase thus leading to lower wages, employment and immigration. Money scarcity also causes high local interest rates ... because it is not as cost effective therefore paper currency is a more practical form to consume. Gold and silver requires more effort to obtain because it can only be acquired through trading with other countries...
- Word Count: 1079
- Approx Pages: 4
- Grade Level: Undergraduate