Understanding the Origins of Economic Instability

The current economic challenges can be traced back to the inception of money and its evolution throughout history. Initially, societies used barter systems, which were cumbersome as they failed to accommodate the complexities of modern economies. As economies advanced, societies designated certain items like gold and silver as universal money due to their durability and consistent value. This historical context is vital to understanding the fragility of today’s financial systems, particularly following the detachment of currencies from the gold standard in 1971, which has allowed governments to create money without tangible backing.