1 Riksdaler – Duchy of Östergötland

In 1617, the Duchy of Östergötland, like the rest of the Swedish realm, was grappling with a severe and complex monetary crisis. This was largely a legacy of the ongoing Kalmar War (1611-1613) against Denmark-Norway, which had drained royal coffers and led to significant war debts. To finance the conflict, King Gustav II Adolf's government had resorted to heavy borrowing from foreign bankers and, most damagingly, to the repeated debasement of the currency. By lowering the silver content in coins while maintaining their face value, the crown created short-term revenue but triggered rampant inflation and a collapse in public trust in the domestic coinage.

The situation was characterized by a chaotic circulation of multiple coin types with wildly fluctuating real values. Older, high-silver coins from the reign of Charles IX were hoarded or exported, while the new, debased "klipping" coins flooded the market. This led to Gresham's Law in action: bad money drove out the good. In Östergötland, a predominantly agricultural region, this instability disrupted rents, taxes, and everyday trade. Farmers and merchants struggled with unpredictable prices, and ducal revenues, collected in a depreciating currency, lost their real value, complicating local administration and the maintenance of the duke's holdings.

Recognizing the threat to the state's economy and his military ambitions, Gustav II Adolf had initiated a major monetary reform in 1617. The cornerstone was the introduction of a new, stable silver coinage based on the riksdaler and öre, with strictly controlled minting. For Östergötland, this meant a slow and challenging transition, as the government sought to recall and melt down the old debased coins. Thus, in 1617, the duchy existed in a transitional period, still burdened by the tangible effects of the recent crisis while the framework for a more stable currency was being painfully implemented across the kingdom.