Monday, January 31, 2011
Egyptians create their own money.
According to the BBC, a significant proportion of banks have shut down in the more seriously affected parts of Egypt due to the current political unrest. As a result, so claims the BBC, people have started exchanging IOUs.
Something similar happened during the Irish bank strike in 1978: people exchanged cheques.
It’s amazing how quickly a form of “peoples’ money” arises as soon as the supply of official money becomes inadequate. There is a PhD thesis there for someone.