The invention of universal money

Through Charles Kindleberger, in his Financial History of Western Europe (chap. 4), I learned that Bernardo Davanzati coined (no pun intended) the expression "universal money" in his Lezione delle monete (1588). It is a fascinating read in light of the current events in Europe. There is an old English translation here.

This passage contains the basic principles of expansionary monetary policy as we understand it today; and the "convulsions" and "distempers" remind us of Occupy Wall Street:

Some grave and famous Authors have call'd Money the Sinews of War and Government; but, in my Opinion, it may be more properly stil'd the Second Blood thereof. for as Blood, which is the Juice and Substance of Meat in the natural Body, does, by circulating out of the greater into the lesser Vessels, moisten all the Flesh, which drinks it up as parch'd Ground soaks Rain Water; so it nourishes and restores as much of it as was dri'd up and evaporated by the natural Heat: In like manner, Money, which we said before was the best Juice and Substance of the Earth, does, by circulating out of the richer Purses into the poorer, furnish all the Nation, being laid out upon those things whereof there is a continual Consumption for the Necessities of Life. From the poorer it returns again into the richer Purses; and thus circulating without Intermission, it preserves alive the Civil Body of the Common-wealth. Hence it may be easily conceiv'd that every State must have a quantity of Money, as every Body a quantity of Blood to circulate therein. But as the Blood stopping in the Head or the larger Vessels puts the Body naturally into a Consumption, Dropsy, or Apoplexy, etc. so should all the Money be only in a few Hands, as in those of the rich for Example, the State falls unavoidably into Convulsions, and other dangerous Distempers. Thus it was very near happening at Rome, when by reason of the multitude of accus'd Persons, of Condemnations, Slaughters, and Confiscations, all the Money was like to come into the Exchequer, had not Tiberius distributed two Millions and a half of Gold into the Banks, when it was to be lent to Debtors upon double Security for three Years, without any Expence or Interest.