confidence

信認　—　Phenomena

That the framework itself is believed in.

Flowing Hair dollar — A photograph of the real thing this term names.

Carolus Dollar (Honyo) — A photograph of the real thing this term names.

In contrast to "credit," which is trust in an individual counterparty, "confidence" is trust in the system. Fiat currency circulates not because the issuer is trusted, but because the system is.

Related terms

inconvertible credit collapse

Terms explained using this word

reserve currency acceptance hyperinflation Germinal sterling Rentenmark independence revolution institution discipline

Courses where this term appears

B11 Paper Money B12 Banking and Credit C07 The Rediscovery of the Same Law C12 Paper Burns E9 Research Practice F1 Philosophy and Intellectual History of Coinage

Where this word appears

Overview: 2700 Years of World History　A Promise on Paper　Redesigning from a Scrap of Paper
United States　The Coinage Act of 1792　The Coinage Act, the penalty clause
United States　1929　An American living room, the radio alight
United States　The anchor groans　Washington, the Congress
United States　The digital shore　The end of the dollar's route
Greece　Bird from the Ashes　A storefront
Greece　The Printing Press Pays for the Occupation　Rationing station in the city
France　Poincaré and the years between the wars　The factories and vaults of France

and 21 more chapters

← Back to the glossary