The statement emphasizes that throughout history, advanced nations have traditionally chosen gold or silver, or a combination of both, as their primary forms of currency. This selection reflects a preference for tangible assets with intrinsic value to serve as mediums of exchange and stores of wealth.
On a deeper level, the quote underscores broader economic principles concerning monetary systems and national stability. The use of precious metals in financial transactions is indicative of an economy's reliance on resources that are widely accepted due to their scarcity, durability, and consistent value across different contexts. This approach contrasts with fiat money systems, which derive value from government decree rather than inherent material worth. By highlighting the choice of gold or silver by civilized countries, Marshall also alludes to the historical significance of these metals in establishing trust and confidence within a financial system.
Alfred Marshall was an influential British economist who lived from 1842 to 1924. He is renowned for his contributions to economic theory and practice during the late nineteenth and early twentieth centuries. His work laid foundational principles that influenced modern economics, particularly in areas like supply and demand analysis and welfare economics.
