Monetization and growth in colonial New England, 1703–1749

Peter Rousseau and Caleb Stroup

Explorations in Economic History, 2011, vol. 48, issue 4, 600-613

Abstract: We examine econometrically the real effects of paper money's introduction into colonial New England over the 1703–1749 period. Departing from earlier analyses that focus primarily on the depreciation of paper money in the region, we show that expansion of the money stock promoted growth in modern sector activity and not the other way around. We also find that bills emitted for seigniorage purposes had a positive effect on the modern sector, while bills issued through loan banks did not.

Keywords: Paper money; Bills of credit; Seigniorage; Land bank; Colonial America; Finance and growth; Vector error correction model (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014498311000404
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Monetization and Growth in Colonial New England, 1703-1749 (2010)
Working Paper: Monetization and Growth in Colonial New England, 1703-1749 (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:exehis:v:48:y:2011:i:4:p:600-613

DOI: 10.1016/j.eeh.2011.09.001

Access Statistics for this article

Explorations in Economic History is currently edited by R.H. Steckel

More articles in Explorations in Economic History from Elsevier
Bibliographic data for series maintained by Catherine Liu ().