Friday, January 29, 2016

17th Century – Wampum Inflation


“Wampum” began as ornamental beads made from clamshells, which were highly prized by Native Americans.  When the Dutch arrived in the New World in the 1600s, they discovered the wampum could be used as money.  Thanks to this new financial instrument, they were able to begin buying beaver pelts from the natives – for wampum – and reselling the furs in Europe for a huge profit.