Monetization and Growth in Colonial New England, 1703-1749

Caleb Stroup and Peter Rousseau

No 10-01, Working Papers from Davidson College, Department of Economics

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. Publication Status: Published in Explorations in Economic History, 2011, 48(4):600-613

Keywords: Paper money; bills of credit; seigniorage; land bank; colonial America; Finance and growth; vector error correction model (search for similar items in EconPapers)
JEL-codes: E42 N11 (search for similar items in EconPapers)
Date: 2010-07
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Related works:
Journal Article: Monetization and growth in colonial New England, 1703–1749 (2011)
Working Paper: Monetization and Growth in Colonial New England, 1703-1749 (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:dav:wpaper:10-01

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