Use of Interest-Bearing Currency in the Civil War: The Experience below the Mason-Dixon Line

Gail E Makinen and G Thomas Woodward

Journal of Money, Credit and Banking, 1999, vol. 31, issue 1, 121-29

Abstract: This paper examines the case of interest-bearing notes in the Confederate States of America which were not legal tender but which were said to circulate. Like other known episodes, the Confederate experiment does not support the legal restrictions theory of the demand for money. There is no evidence that these instruments circulated readily and some evidence that their limited circulation fell short of that of competing noninterest-bearing notes--characteristics inconsistent with legal restrictions theory. The episode displays other characteristics inconsistent with or not encompassed by the major competing explanations of why interest-bearing notes do not circulate.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (3)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:mcb:jmoncb:v:31:y:1999:i:1:p:121-29

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().