New Books in Economic and Business History

Oliver Volckart, "The Silver Empire: How Germany Created Its First Common Currency" (Oxford UP, 2024)

Aug 21, 2024

Oliver Volckart, an expert on Germany’s first common currency, shares insights from his upcoming book. He discusses the challenges posed by multiple currencies that harmed trade and governance. Volckart highlights how competitive debasements led to the realization that a common currency was essential. He also delves into the intrigue surrounding key negotiations and interest groups from the 16th century, emphasizing the Rhine River's critical role in shaping economic dynamics. Finally, he connects historical currency developments to modern monetary policies.

53:02

Episode guests

Oliver Volckart

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Episode notes

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Quick takeaways

The introduction of a common currency in the Holy Roman Empire addressed economic instability caused by multiple circulating currencies, benefiting both merchants and consumers.

Sylvester Wright's trial highlighted the detrimental effects of counterfeit currency on market stability, underscoring the urgent need for monetary reform in the Empire.

Deep dives

The Rationale Behind the Common Currency

The development of a common currency in the Holy Roman Empire stemmed primarily from the challenges posed by Gresham's Law, which explains how bad money can drive good money out of circulation. As economic integration advanced, the issue of circulating diverse currencies became increasingly problematic for merchants and the general populace. The princes recognized that the chaos of multiple currencies undermined economic stability and led to financial uncertainty, prompting calls for a unified currency system. Ultimately, the realization that a common currency could mitigate these economic vulnerabilities motivated members of the empire to pursue this solution in the 1540s.

Intro

2min

Exploring the Roots of Common Currencies and Their Modern Implications

4min

The Intriguing Case of Sylvester Wright and Economic Principles

3min

Currency and Governance in the Holy Roman Empire

24min

The Rhine's Role in Currency Evolution

13min

Exploring Currency, Authority, and Future Research in the German Empire

3min

The problems that gave rise to the widespread desire to introduce a common currency were myriad. While trade was able to cope with-and even to benefit from-the parallel circulation of many different types of coin, it nevertheless harmed both the common people and the political authorities. The authorities in particular suffered from neighbours who used their comparatively good money as raw material to mint poor imitations. Debasing their own coinage provided an, at best, short-term solution. Over the medium and long term, it drove the members of the Empire into rounds of competitive debasements, until they realised that a common currency was the only answer that addressed the core of the problem.

In The Silver Empire: How Germany Created Its First Common Currency (Oxford University Press, 2024) Dr. Oliver Volckart examines the conditions that shaped the monetary outlook of the member states of the Empire, paying particular attention to the uneven access to silver and gold. Following closely the negotiations that prepared the common currency, he is able to illuminate the interest groups that were formed, what their agendas and ulterior motives were, how alliances were forged, and how it was eventually possible to obtain majority agreement on what a common currency should look like: a silver-based currency that was introduced in 1559-66.

In fact, in contrast to what historians once believed, the common currency they achieved turns out to have functioned not significantly worse than other currencies of the time: it had similar problems and similar advantages as the money issued by more centralised governments.

This interview was conducted by Dr. Miranda Melcher whose new book focuses on post-conflict military integration, understanding treaty negotiation and implementation in civil war contexts, with qualitative analysis of the Angolan and Mozambican civil wars.

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New Books in Economic and Business History

Oliver Volckart, "The Silver Empire: How Germany Created Its First Common Currency" (Oxford UP, 2024)

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Rationale Behind the Common Currency

The Case of Sylvester Wright

Decentralization and Governance Challenges

The Transformation of Consumer Experience

Remember Everything You Learn from Podcasts