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 DamodaranEvidence 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 Ever— The Master Investor Podcast with Wilfred FrostCreated: 8/12/2026, 6:41:25 PM
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