Industrialización, desarrollo financiero y oferta monetaria en Barcelona a mediados del siglo XIX

Pere Pascual Domènech () and Carles Sudrià Triay ()
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Pere Pascual Domènech: Centre d’Estudis “Antoni de Capmany”, Universidad de Barcelona
Carles Sudrià Triay: Centre d’Estudis “Antoni de Capmany”, Universidad de Barcelona

Investigaciones de Historia Económica - Economic History Research (IHE-EHR), Journal of the Spanish Economic History Association, 2008, vol. 4, issue 03, 45-77

Abstract: The article deals with the need, inherent in any process of industrialization, to increase money supply in order to avoid deflationary tensions. We examine the case of a major financial and commercial centre: Barcelona in the mid-nineteenth century. The paper specifies the volume of different types of fiat money in circulation (bank notes, “validated” cheques, internal pay orders, short-term bonds…) and their characteristics as means of payment. The aim of the study is to show that, in a context of “free banking” without legal tender of the paper money, there was an automatic process towards a balance between supply and demand for money and that any possible oversupply was eliminated through a “crowding out” effect. In such systems, money-supply growth seems have not significant effects on prices, but instead, sudden contractions of money supply did have intense upward impacts on interest rate. KEY Classification-JEL: E41, E42, N13, N23

Keywords: Industrialisation; Money supply; Prices; Interest rate; Spain; 19th Century (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:ahe:invest:v:04:y:2008:i:03:p:45-77

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