'We Need New Banks'

In a SPIEGEL interview, Harvard historian Niall Ferguson discusses the turbulent history of money, the inevitability of financial crises and the fatal influence mathematicians have on the monetary system.

SPIEGEL: Professor Ferguson, can you show us the contents of your wallet?
Ferguson: If you like, sure. Have a look. I have about a hundred dollars on me.

SPIEGEL: Why do people consider such green-printed pieces of paper to be so valuable?
Ferguson: These pieces of paper are also promissory notes. Four thousand years ago in ancient Babylon, clay tablets fulfilled this role. Nowadays we use banknotes. They are only worth what other people are willing to give you in exchange for them. Money is about trust, no matter what form it takes, be it clay, gold, paper, or a computer monitor with a liquid crystal display...

Spiegel: 'We Need New Banks'