ABSTRACT
The quest for ‘trust’ has to start from the creation of money in ancient times. In many societies, the origin of money is related to the acceptance of silver (or other commodities) as money. Throughout history governments as well as private institutions have tried to use monetary expansion to finance less than economically beneficial activities, something that at times could also undermine trust in the currency. Obviously, with the rise of more complex financial instruments, the role of institutions also grew in importance. This has three reasons. First, the institution can help to provide confidence in a money, as was the case in China during the Yuan dynasty. Second, the state can use the money for stimulating the economy. Third, via money, institutions are capable of gaining control and profit. The chapter also presents an overview of this book.
