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Currency - Wikipedia, the free encyclopedia |
 | | However, the collapse of the Near Eastern trading system pointed to a flaw: in an era where there was no place that was safe to store value, the value of a circulating medium could only be as sound as the forces that defended that store. |
 | | In China, however, the need for credit and for circulating medium led to the introduction of paper money, commonly known today as banknotes. |
 | | First, since a note has no intrinsic value, there was nothing to stop issuing authorities from printing more of it than they had specie to back it with. |
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