The invention of money dates back to thousands of years ago. Before the use of money, barter was employed for trade, but it required a mutual compatibility of exchanged goods between two parties. As division of labor and specialization increased, the use of money as a facilitator for commercial transactions became widespread.

Initially, metals like gold and silver, which had intrinsic value, were used as money, but over time, money became one of the symbols of state sovereignty. This authority and power drove states to issue fiat paper money. The content of the paper on which money was printed lost its intrinsic value, and states designated it as a legal tender through laws, giving paper money purchasing power.

Today, all countries use paper money, and these currencies are referred to as “fiat money.” In other words, the power of money relies on the reputation of the state. When the purchasing power of money diminishes, in fact, the reputation of the state also suffers. Preserving the power of money is a primary obligation for governments when it comes to their citizens.

Inflation, the phenomenon we refer to, is defined as increases in prices. During inflation, the purchasing power of money decreases, rendering it worthless. Citizens with devalued currency turn to alternatives that retain their financial value to protect their wealth. This accelerates a flight from the currency, causing prices to rise further, and the currency becomes even more devalued. Citizens increasingly turn to foreign currencies that do not lose value. In other words, the national currency representing the power and reputation of the state becomes obsolete.

Although governments may not like to limit the amount of money, there comes a point where excessive money harms them as well. It seems that such a period has now arrived in our country, and it is evident that the government wishes to reverse this process.