The massachusetts paper money of 1690

Dror Goldberg

Research output: Contribution to journalArticlepeer-review

16 Scopus citations

Abstract

Modern currency originates in the inconvertible, legal tender paper money that Massachusetts devised in 1690. The circumstances that led to its creation are more complex than the typical story of wartime specie shortage. Due to temporary political constraints of that turbulent period, the currency could be neither backed by land nor imposed on anyone, as was then standard. Instead, it had to be disguised from England as a simple, private-seeming IOU. By pleasing both its pay-demanding troops and England, the government maximized its probability of survival subject to the constraints.

Original languageEnglish
Pages (from-to)1092-1106
Number of pages15
JournalJournal of Economic History
Volume69
Issue number4
DOIs
StatePublished - Dec 2009

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