Creator: Rolnick, Arthur J., 1944- and Weber, Warren E. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Department) Number: 236 Beschreibung:
This paper was written for the National Bureau of Economic Research Macro Conference to be held July 7 and 8, 1983, Cambridge, Massachusetts.
Stichwort: Specie, Gresham, United States Mint, Currency, Coinage, Greenbacks, and Legal tender Fach: N11 - Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: U.S.; Canada: Pre-1913 and E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
Creator: Weber, Warren E. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Department) Number: 629 Abstract:
This paper examines the pricing of statebank notes prior to 1860 using data on the discounts on these notes as quoted in New York, Philadelphia, Cincinnati, and Cleveland. The study is organized around determining whether these banknotes were priced consistent with their expected net redemption value. It finds a bank’s notes had higher prices when it was redeeming it notes for specie than when is was suspended. However, although prices generally varied inversely with redemption costs, the relationship was not tight and persistent arbitrage opportunities existed.
Fach: N21 - Economic History: Financial Markets and Institutions: U.S.; Canada: Pre-1913
Creator: Weber, Warren E. Beschreibung:
This file contains a listing of all banks that existed in the United States between 1784 and 1860 along with their opening and closing dates. Further, if a bank went out of existence, its disposition – whether it closed, failed, or other – is given. For the methodology to obtain beginning and ending dates see Weber, Warren E., “Early State Banks in the United States: How Many Were There and When Did They Exist?” Journal of Economic History, 433–455, June 2006.
Creator: Weber, Warren E. Series: Staff report (Federal Reserve Bank of Minneapolis. Research Department) Number: 344 Abstract:
This study examines the pricing of U.S. state banknotes before 1860 using discount data from New York, Philadelphia, Cincinnati, and Cleveland. The study determines whether these banknotes were priced consistent with their expected net redemption value as securities are. The evidence is mixed. Prices for a bank’s notes were higher when the bank was redeeming its notes for specie than when it was not, and banknote prices generally reflected the costs of note redemption. However, the relationship between prices and redemption costs was not tight, and there were cases in which the notes of distant banks went at par.
Stichwort: State Banks, Currency, and Bank Notes Fach: E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems and N21 - Economic History: Financial Markets and Institutions: U.S.; Canada: Pre-1913
Creator: Ales, Laurence, Carapella, Francesca, Maziero, Pricila, and Weber, Warren E. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Department) Number: 641 Abstract:
Prior to 1863, state-chartered banks in the United States issued notes–dollar-denominated promises to pay specie to the bearer on demand. Although these notes circulated at par locally, they usually were quoted at a discount outside the local area. These discounts varied by both the location of the bank and the location where the discount was being quoted. Further, these discounts were asymmetric across locations, meaning that the discounts quoted in location A on the notes of banks in location B generally differed from the discounts quoted in location B on the notes of banks in location A. Also, discounts generally increased when banks suspended payments on their notes. In this paper we construct a random matching model to qualitatively match these facts about banknote discounts. To attempt to account for locational differences, the model has agents that come from two distinct locations. Each location also has bankers that can issue notes. Banknotes are accepted in exchange because banks are required to produce when a banknote is presented for redemption and their past actions are public information. Overall, the model delivers predictions consistent with the behavior of discounts.
Stichwort: Banknotes, Random matching, and Banks Fach: G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages, N21 - Economic History: Financial Markets and Institutions: U.S.; Canada: Pre-1913, and E50 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
Creator: Redish, Angela, 1952- and Weber, Warren E. Series: Staff report (Federal Reserve Bank of Minneapolis. Research Department) Number: 460 Abstract:
We construct a random matching model of a monetary economy with commodity money in the form of potentially different types of silver coins that are distinguishable by the quantity of metal they contain. The quantity of silver in the economy is assumed to be fixed, but agents can mint and melt coins. Coins yield no utility, but can be traded. Uncoined silver yields direct utility to the holder. We find that optimal coin size increases with the probability of trade and with the stock of silver. We use these predictions of our model to analyze the coinage decisions of the monetary authorities in medieval Venice and England. Our model provides theoretical support for the view that decisions about coin sizes and types during the medieval period reflected a desire to improve the economic welfare of the general population, not just the desire for seigniorage revenue.
Creator: Benati, Luca, Lucas, Jr., Robert E., Nicolini, Juan Pablo, and Weber, Warren E. Series: Staff report (Federal Reserve Bank of Minneapolis. Research Department) Number: 587 Abstract:
We explore the long-run demand for M1 based on a dataset comprising 38 countries and relatively long sample periods, extending in some cases to over a century. Overall, we find very strong evidence of a long-run relationship between the ratio of M1 to GDP and a short-term interest rate, in spite of a few failures. The standard log-log specification provides a very good characterization of the data, with the exception of periods featuring very low interest rate values. This is because such a specification implies that, as the short rate tends to zero, real money balances become arbitrarily large, which is rejected by the data. A simple extension imposing limits on the amount that households can borrow results in a truncated log-log specification, which is in line with what we observe in the data. We estimate the interest rate elasticity to be between 0.3 and 0.6, which encompasses the well-known squared-root specification of Baumol and Tobin.
Stichwort: Cointegration and Long-run money demand Fach: E41 - Demand for Money and C32 - Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models