"Monetae cudendae ratio" (also spelled "Monetæ cudendæ ratio"; English: "On the Minting of Coin" or "On the Striking of Coin"; sometimes, "Treatise on Money") is a paper on

coinage Coinage may refer to: * Coins, standardized as currency * Neologism, coinage of a new word * '' COINage'', numismatics magazine * Tin coinage, a tax on refined tin * Protologism ''Protologism'' is a term coined in 2003 by the American literary ...

Nicolaus Copernicus Nicolaus Copernicus (; pl, Mikołaj Kopernik; gml, Niklas Koppernigk, german: Nikolaus Kopernikus; 19 February 1473 – 24 May 1543) was a Renaissance polymath, active as a mathematician, astronomer, and Catholic canon, who formulat ...

(Polish: Mikołaj Kopernik). It was written in 1526 at the request of

Sigismund I the Old Sigismund I the Old ( pl, Zygmunt I Stary, lt, Žygimantas II Senasis; 1 January 1467 – 1 April 1548) was King of Poland and Grand Duke of Lithuania from 1506 until his death in 1548. Sigismund I was a member of the Jagiellonian dynasty, the ...

King of Poland Poland was ruled at various times either by dukes and princes (10th to 14th centuries) or by kings (11th to 18th centuries). During the latter period, a tradition of free election of monarchs made it a uniquely electable position in Europe (16t ...

, and presented to the Prussian Diet.

History

Copernicus' earliest draft of his essay in 1517 was entitled "De aestimatione monetae" ("On the Value of Coin"). He revised his original notes, while at

Olsztyn Olsztyn ( , ; german: Allenstein ; Old Prussian: ''Alnāsteini'' * Latin: ''Allenstenium'', ''Holstin'') is a city on the Łyna River in northern Poland. It is the capital of the Warmian-Masurian Voivodeship, and is a city with county right ...

(Allenstein) in 1519 (which he defended against the Teutonic Knights), as "Tractatus de monetis" ("Treatise on Coin") and "Modus cudendi monetam" ("The Way to Strike Coin"). He made these the basis of a report which he presented to the Prussian Diet at

Grudziądz Grudziądz ( la, Graudentum, Graudentium, german: Graudenz) is a city in northern Poland, with 92,552 inhabitants (2021). Located on the Vistula River, it lies within the Kuyavian-Pomeranian Voivodeship and is the fourth-largest city in its pro ...

(Graudenz) in 1522; Copernicus' friend Tiedemann Giese accompanied him on the trip to Graudenz. For the 1528 Prussian Diet, Copernicus wrote an expanded version of this paper, "Monetae cudendae ratio", setting forth a general theory of money. In the paper, Copernicus postulated the principle that "bad money drives out good", which later came to be referred to as

Gresham's Law In economics, Gresham's law is a monetary principle stating that "bad money drives out good". For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable c ...

after a later describer, Sir

Thomas Gresham Sir Thomas Gresham the Elder (; c. 151921 November 1579), was an English merchant and financier who acted on behalf of King Edward VI (1547–1553) and Edward's half-sisters, queens Mary I (1553–1558) and Elizabeth I (1558–1603). In 1565 ...

. This phenomenon had been noted earlier by

Nicole Oresme Nicole Oresme (; c. 1320–1325 – 11 July 1382), also known as Nicolas Oresme, Nicholas Oresme, or Nicolas d'Oresme, was a French philosopher of the later Middle Ages. He wrote influential works on economics, mathematics, physics, astrology ...

, but Copernicus rediscovered it independently. Gresham's Law is still known in Poland and

Central Central is an adjective usually referring to being in the center of some place or (mathematical) object. Central may also refer to: Directions and generalised locations * Central Africa, a region in the centre of Africa continent, also known a ...

and

Eastern Europe Eastern Europe is a subregion of the European continent. As a largely ambiguous term, it has a wide range of geopolitical, geographical, ethnic, cultural, and socio-economic connotations. The vast majority of the region is covered by Russia, wh ...

as the Copernicus-Gresham Law. In the same work, Copernicus also formulated an early version of the

quantity theory of money In monetary economics, the quantity theory of money (often abbreviated QTM) is one of the directions of Western economic thought that emerged in the 16th-17th centuries. The QTM states that the general price level of goods and services is directl ...

, or the relation between a stock of money, its velocity, its price level, and the output of an economy. Like many later

classical economists Classical economics, classical political economy, or Smithian economics is a school of thought in political economy that flourished, primarily in Britain, in the late 18th and early-to-mid 19th century. Its main thinkers are held to be Adam Smit ...

of the 18th and 19th centuries, he focused on the connection between increased

money supply In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include Circulation (curren ...

and

inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...

. "Monetae cudendae ratio" also draws a distinction between the

use value Use value (german: Gebrauchswert) or value in use is a concept in classical political economy and Marxist economics. It refers to the tangible features of a commodity (a tradeable object) which can satisfy some human requirement, want or need, or ...

and

exchange value In political economy and especially Marxian economics, exchange value (German: ''Tauschwert'') refers to one of the four major attributes of a commodity, i.e., an item or service produced for, and sold on the market, the other three attributes b ...

commodities In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. The price of a co ...

, anticipating by some 250 years the use of these concepts by Adam Smith—although it, too, had antecedents in earlier writers, including

Aristotle Aristotle (; grc-gre, Ἀριστοτέλης ''Aristotélēs'', ; 384–322 BC) was a Greek philosopher and polymath during the Classical Greece, Classical period in Ancient Greece. Taught by Plato, he was the founder of the Peripatet ...

. Copernicus' essay was republished in 1816 in the Polish capital,

Warsaw Warsaw ( pl, Warszawa, ), officially the Capital City of Warsaw,, abbreviation: ''m.st. Warszawa'' is the capital and largest city of Poland. The metropolis stands on the River Vistula in east-central Poland, and its population is official ...

, as ''Dissertatio de optima monetae cudendae ratione'' (''Dissertation on the Optimal Minting of Coin''), few copies of which survive.

References

Journal

External links

*
Nicolaus Copernicus: Monetae cudendae ratio
Latin text at intratext.com *

* �

{{Nicolaus Copernicus Monetary economics Currency Economics laws Works by Nicolaus Copernicus Latin texts 16th-century economic history 1526 Treatises

History

See also

References

Journal

External links