Currencies are fundamentally built on trust; if you lose trust in the government issuing a currency, it becomes just paper, and all financial assets are at risk because they depend on the issuer's long-term capacity to preserve currency buying power.

causalpending

Speaker

Aswath Damodaran

Evidence Quote

Currencies are built on trust. If you don't trust a government issuing a currency, it's just a piece of paper. And I think that all financial assets are built on trust.

Source

Aswath Damodaran: I Am More Cautious Than EverThe Master Investor Podcast with Wilfred Frost
Created: 8/12/2026, 6:41:25 PM

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