The Ledger

The LedgerThe LedgerThe Ledger

The Ledger

The LedgerThe LedgerThe Ledger
  • Home
  • Why
  • Definitions & Sources
  • More
    • Home
    • Why
    • Definitions & Sources
Start The Ledger
  • Home
  • Why
  • Definitions & Sources
Start The Ledger

The Paper Promise (Parts 1 - 2):

Tang & Song Dynasties

Imperial dynasties of China. The Tang Dynasty (618-907 CE) saw the invention of early paper credit, and the Song Dynasty (960-1279 CE) created the world's first government-backed paper money. 

"Flying Money" (fei qian)

An early form of paper credit used by merchants during the Tang Dynasty, essentially deposit certificates redeemable in different locations. 

Jiaozi

One of the earliest forms of government-backed paper money, first issued in the 11th century during the Song Dynasty. 

Fiat Currency

Money that is not backed by a physical commodity (like gold or silver) and has value primarily because a government declares that it is legal tender. The Yuan Dynasty's Chao was a famous example.

Inflation

A general increase in prices and fall in the purchasing value of money, a recurring problem when governments over-issued paper currency.

Medium of Exchange

An object or system that is widely accepted in exchange for goods and services. 

Social Construct

An idea or object whose value is based on a shared belief within a society. 

Bank of Amsterdam (Amsterdamsche Wisselbank)

An influential public bank established in 1609. It was not a lending bank but a deposit and transfer institution that created a stable bank money system.

Bank Money

A stable unit of account created by the Bank of Amsterdam, representing deposits of various currencies. Transactions were made by transferring this credit within the bank's books, a forerunner to modern electronic transfers. 

Stockholms Banco

The first European bank to issue modern banknotes in 1661. It failed due to over-issuance.

Banknotes

Promissory notes, issued by a bank and payable to the bearer on demand, that circulate as money.

Swedish Riksbank

The central bank of Sweden, founded in 1668 after the collapse of Stockholms Banco, making it the world's oldest central bank.

Sources for The Paper Promise (Part 1): A Journey to the East

  • "When Money Talks: The Power of Coins and Notes" by Frank Westerman
  • "A History of Money" by Glyn Davies
  • "Paper Money of the Song Dynasty" by Shiba Yoshinobu
  • World History Encyclopedia, "The Invention of Paper Money in China"

Sources for The Paper Promise (Part 2): The Banks of the North

  • "The Ascent of Money: A Financial History of the World" by Niall Ferguson
  • "A History of Money" by Glyn Davies
  • "The First Modern Economy: Success, Failure, and Perseverance of the Dutch Economy, 1500-1815" by Jan De Vries and Ad van der Woude
  • World History Encyclopedia, "History of the Bank of England" (for context on forerunners).

Copyright © 2026 The Ledger - All Rights Reserved.

Powered by

  • Home
  • Why
  • Definitions & Sources
  • Contact
  • FAQs

This website uses cookies.

We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.

Accept