Common Currency versus Currency Union: The U.S. Continental Dollar and Denominational Structure, 1775-1776 / Farley Grubb.

Format:

Book

Author/Creator:

Grubb, Farley.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w21728.

NBER working paper series no. w21728

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Common Currency versus Currency Union

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2015.

Summary:

I use denominational structure (the spacing and size of monetary units) to explain how the Continental Congress attempted to manage a successful common currency when sub-national political entities were allowed to have separate currencies and run independent monetary policies. Congress created a common currency that was too large to use in ordinary transactions. Congress hoped this currency would be held for post-war redemption and would not circulate as money during the war. As such, it would not contribute to wartime inflation. By contrast, individual state currencies were emitted in small enough denominations to function as the domestic medium of exchange.

Notes:

Print version record

November 2015.