Abstract

The pantheon of classical liberal thinkers must honor the memory of one brilliant mathematician, scientist, and debunker of superstitious beliefs, the sound-money advocate Nicole Oresme. Although his opposition to the recoinage practices of the French monarchy was not unprecedented in the fourteenth century, Oresme must be credited with anticipating the “rational expectations” in economics when he distinguished quite forcefully between “preannounced debasement” and “secret debasement” and their effects on the distribution of wealth. Oresme explains that the king should not practice secret debasement, and can appear as a pioneer for modern ideas on monetary surprises.