Copernicus Studied Coinage Along With HeavensSubmitted by Galileo on Tue, 01/27/2009 - 12:40
Copernicus Studied Coinage Along With Heavens
By Kerry Rodgers, World Coin News
January 26, 2009
"Copernicus took the time for a dispassionate analysis of circulating money. In particular he recognized the need to control the minting of coins, both as to their quality and quantity. He realized that money loses its value when it is in too great a supply. With too much cash around, prices tend to rise rapidly. In short, he diagnosed the prime cause of inflation. And he appreciated inflation's consequences, not only the collapse of living standards and the economic well-being of a nation, but the likely fall of the government.
In 1526 he put his ideas on the value of money into print in a major treatise: Monetae cudendae ratio. Among other matters, he pointed out that debased coins drive the good from circulation. This was 70 years before Thomas Gresham came up with the same idea that gave us Gresham's Law. Perhaps it should be known as Copernicus' Law.
Copernicus' views became widely read by leaders in both Prussia and Poland desperate to stabilize their currencies. On several occasions he presented arguments for restricting the amount of money in circulation before the Prussian Diet. Resolution of the situation required a delicate and diplomatic touch. That this was finally achieved in 1530 owed much to the efforts of Copernicus. When the rate of the minting of new coins was restricted, inflation fell rapidly, financial order was restored and economic growth and well-being returned."