History 2186A/B Lecture Notes - Lecture 4: Precious Metal, Currency Crisis, Spice Trade
Currency crises: value of currency drops dramatically and quickly, also known as the kipper-und wipperzeit. In russia 1662 because of financial restraints, the government announced it would stop using silver for coins and start using copper, insisting it would be worth the same, but the people do not buy the government insurance of equality. Led to the copper riot in moscow where 1000 people were killed because of a panic of the value of their money. In terms of the financial situation, this is a really critical difference from disease panics. In financial panics, the panic can actually impact the disease so calming things down deals with the problem. Issue is that these sorts of runs can occur at anytime, anywhere, and for any reason for example 2009 there was a message on craig"s list which suggested that a certain bank in.