The Introduction provides the general context for what this book calls the communal currency tradition in British society. Its chronology starts in the early 1790s when the French revolutionary government’s experiment with the state-issued fiat paper currency, the assignat, caused heated discussion in Britain, which eventually consolidated Britain’s currency exceptionalism. The recent revival of the state theory of money (neo-chartalism) provides a reference point for the book’s unique theoretical outlook, which is explained by drawing upon the existing literature on economics, sociology and historical studies. After an overview of the development of monetary ideas, the communal currency tradition, which was closely associated with the idea of voluntary acceptance, is further explained based upon the writings of Edmund Burke and his involvement in the legal ban on the circulation of assignats in England. The broad outline of the book’s discussion is delineated by presenting the scope of communal currency as it impacted the economic, political, cultural and social aspects of British society.

This chapter covers the history of banking in the Iberian Peninsula from the early nineteenth century to the beginning of the twenty-first century. The narrative provides a complete, albeit brief, historical overview of how the financial structures of the two countries have evolved. It also offers a comparative perspective of the two financial systems, pointing out to their similarities and their differences. The first part of the chapter describes the formation of the Portuguese and the Spanish banking systems. Special attention is given to the main changes that took place since their early beginnings to the consolidation and modernization of the banking structure in both countries. The second part traces the history of the two Iberian central banks: the Bank of Portugal and the Bank of Spain. The last section compares the banking structure and development of the two Iberian nations, and brings out their similarities and differences. First the attention is focused on comparing the main features of the Portuguese and Spanish private commercial and investment institutions. The chapter finishes with a brief evaluation of the historical role played by the Bank of Portugal and the Bank of Spain.