The Bank of Amsterdam and the Leap to Central Bank Money

  title={The Bank of Amsterdam and the Leap to Central Bank Money},
  author={Stephen F. Quinn and William Roberds},
  journal={The American Economic Review},
Central bank money is the foundation of modern monetary and payment systems. Central bank money defines a unit of account. The price at which this money trades determines “monetary policy.” And most payment systems require the transfer of central bank funds before a transaction is legally final or “settled.” Despite its current ubiquity, the origins of central bank money have remained obscure, and the present-day system involves a remarkable conceptual leap from earlier coin-based systems. In… 

Figures from this paper

Central Banks: Past, Present, Future
This paper looks at the question of central bank mandate and design in a larger historical context with the goal of understanding the rationale for the design of the European Central Bank (ECB), and
From War Financier to Bankers’ Bank
The Bank of England, established in 1694, initially acting as agent of the government to finance costly wars, gradually evolved to becoming a true central bank in the middle of the nineteenth
The Origins of the Classical Gold Standard: A Revisionist History
This paper situates the early history of the Bank of England in the 17th century environment where the circulation of specie-based coin caused it to wear down, prompting debasement by monetary
The Bank of Amsterdam Through the Lens of Monetary Competition
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
How Amsterdam Got Fiat Money
What Do We Really Know About the Long-Term Evolution of Central Banking? Evidence from the Past, Insights for the Present
The ongoing financial crisis is shaking central bankers’ certainties about their mission, and a rethinking of such mission can greatly benefit from a non-finalistic reassessment of how central
Not an Ordinary Bank But a Great Engine of State: The Bank of England and the British Economy, 1694-1844
From its foundation as a private corporation in 1694 the Bank of England extended large amounts of credit to support the British private economy and to support an increasingly centralized British
THE PRESENT PAPER EXAMINES THE ROLE OF CENTRAL BANKS as “lenders of last resort.” This function has been one of the primary justifications for the existence of a central banking system, and has
Money and Trust: Lessons from the 1620s for Money in the Digital Age
Money is a social convention where one party accepts it as payment in the expectation that others will do so too. Over the ages, various forms of private money have come and gone, giving way to
An Accounting History of Credit Money
This article seeks to demonstrate that the invention of double-entry accounting, during the 13th and 14th centuries in the cities of northern Italy, was at the origin of the emergence of our monetary


An Economic Explanation of the Early Bank of Amsterdam, Debasement, Bills of Exchange, and the Emergence of the First Central Bank
The Bank of Amsterdam, founded in 1609, was the first public bank to offer accounts not directly convertible to coin. As such, it can be described as the first true central bank. The debut of central
Linking the Fortunes. Currency and Banking 1550-1800
Introduction In the course of the seventeenth century, Dutch finance became intricately connected to the world economic system. Its development was bolstered by favourable developments in
The Big Problem of Large Bills: The Bank of Amsterdam and the Origins of Central Banking
This paper outlines a model of the first true central bank, the Bank of Amsterdam, founded in 1609. Employing a variant of the Freeman (1996) model of money and payments, we first analyze the
How it all began: the monetary and financial architecture of Europe during the first global capital markets, 1648–1815
  • L. Neal
  • Economics
    Financial History Review
  • 2000
Larry Neal, How it all began: the monetary and financial architecture of Europe during the first global capital markets, 1648–1815 The Treaty of Westphalia created the modern nation-state system of
The Kipper- und Wipperzeit and the Foundation of Public Deposit Banks∗
The “Kipperund Wipperzeit”, one of the most severe hyperinßations in the time of commodity money, gave rise to the foundation of the famous public deposit banks, such as the Bank of Amsterdam and the
The Big Problem of Small Change
The medieval money supply mechanism implemented a commodity standard throughout the denomination structure by imposing mint and melt points for each coin. Mints stood ready to sell (but not to buy)
The First Modern Economy: Success, Failure, and Perseverance of the Dutch Economy, 1500–1815
Preface 1. By way of introduction Part I. Structures: 2. Space and time, structures and conjunctures 3. The people 4. Money and taxes, borrowing and lending 5. Three questions Part II. Sectors: 6.
La banque d'Amsterdam et le florin européen : au temps de la République néérlandaise (1610-1820)
Disclaimer/Complaints regulations If you believe that digital publication of certain material infringes any of your rights or (privacy) interests, please let the Library know, stating your reasons., and Research Department, Federal Reserve Bank of Atlanta, 1000 Peachtree St., NE, Atlanta, GA 30309-4470,
  • 2006
Historiografie en Economie van de " Muntchaos De Muntproductie van de Republiek 1606-1795, Deel II
  • Historiografie en Economie van de " Muntchaos De Muntproductie van de Republiek 1606-1795, Deel II
  • 1998