Learn The History of Inflation

Photo by Twitter @ethmessages on Unsplash

Inflation is the devaluation of the value of a currency.

Let’s understand its history:

The ancient Roman empire attacked Macedonia and captured 300 tons of silver.

All that silver was brought back to Rome. Thus buying ability of the Romans increased.

They started to import more and more stuff. But at a time the silver reserve started to vanish away. So Roman government started to mix tin in silver to make silver coins.

When Roman traders got to know about it. They started to decrease the value of the same silver coins.

They increased the prices of commodities. Hence the devaluation of currency happened. That was the first inflation of currency that happened.

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