1 Copper Öre – Sweden

In 1768, Sweden found itself in a precarious monetary situation, a direct consequence of the Riksdag of the Estates' decision in 1765 to return to the silver standard. This policy, driven by the Caps (Mössorna) party, which had gained power, aimed to combat the rampant inflation caused by decades of excessive note printing by the Riksbank to finance the state's debts, notably from the costly Great Northern War. The shift was abrupt and severe: the banknotes in circulation, known as transportsedlar, were to be redeemed for silver coin at a significantly reduced value, effectively a form of deflationary shock therapy intended to restore confidence and fiscal discipline.

The immediate result was a severe economic contraction and a liquidity crisis, known as the "Caps' Deflation." Credit dried up, prices fell sharply, and widespread bankruptcies plagued merchants and industry. The promised silver redemption proved difficult to fulfill due to a limited silver reserve, leading to a critical shortage of physical currency in daily circulation. This caused immense hardship for the general population and stifled commerce, creating a stark divide between those who held solid assets and those reliant on credit or paper money.

By 1768, public and political discontent with the Caps' harsh monetary regime had peaked. The opposing party, the Hats (Hattarna), capitalized on this distress, advocating for a return to a more flexible monetary policy to stimulate the economy. The crisis of 1768 thus set the stage for a major political shift, which culminated in the Hats regaining power at the Riksdag later that year. They promptly reversed the policy, suspending silver redemption and resuming the issuance of paper money, ending the immediate crisis but leaving Sweden's long-term currency stability unresolved and setting a pattern of monetary experimentation that would continue for decades.