The Bank of Amsterdam Through the Lens of Monetary Competition

31 Pages Posted: 22 Mar 2015

See all articles by Stephen Quinn

Stephen Quinn

Texas Christian University - Department of Economics

William Roberds

Federal Reserve Bank of Atlanta

Date Written: September 2012

Abstract

In 1683 the Bank of Amsterdam introduced a form of fiat money that successfully competed with the coinage of the time. We argue that the principal motive for this monetary innovation was the uncertain value of coins circulating within the Dutch Republic. The Bank's fiat money regime persisted until the downfall of the Dutch Republic in 1795 and incorporated modern features such as gross settlement of financial obligations, open market operations, central bank repurchase agreements (the equivalent thereof), and emergency liquidity facilities.

Keywords: fiat money, central bank, monetary competition

JEL Classification: E42, E58, N14

Suggested Citation

Quinn, Stephen and Roberds, William, The Bank of Amsterdam Through the Lens of Monetary Competition (September 2012). FRB Atlanta Working Paper No. 2012-14, Available at SSRN: https://ssrn.com/abstract=2479571 or http://dx.doi.org/10.2139/ssrn.2479571

Stephen Quinn

Texas Christian University - Department of Economics ( email )

Fort Worth, TX 76129
United States

William Roberds (Contact Author)

Federal Reserve Bank of Atlanta ( email )

1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States
404-498-8970 (Phone)
404-498-8956 (Fax)

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