 In the "confidence model", some event, or series of events, such as defeats in battle, or a run on stocks of the specie that back a currency, removes the belief that the authority issuing the money will remain solvent—whether a bank or a government.Because people do not want to hold notes that may become valueless, they want to spend them.Sellers, realizing that there is a higher risk for the currency, demand a greater and greater premium over the original value.