Thursday, May 13, 2021

An interesting paragraph from Anna J. Schwartz

At NBER: Chapter 3, Secular Price Change in Historical Perspective by Anna J. Schwartz (1987). I find a lot of useful insights scattered in with facts and data. Recommended.


From page 93 (or 17 of 33 in the PDF):

One important change in the eighteenth century was the proliferation of forms in which money was held and used. In England, silver and gold coin were supplemented by note issues of the Bank of England, London private banks, and, after 1750, country banks, as well as by inland bills of exchange created by individual borrowers or lenders. In Holland, where the Bank of Amsterdam was founded at the beginning of the seventeenth century, paper money became well known. In Spain, its use became familiar in the last quarter of the eighteenth century. In France, lingering distrust created by John Law's ill-fated banknote issues effectively ended further public willingness to hold money in any form but coin until the Revolution.

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