Monetary Instability, Lack of Integration, and the Curse of a Commodity Money Standard. The German Lands, c.1400–1900 A. D.
Year: 2014
Author: Rössner, Philipp Robinson
Credit and Capital Markets – Kredit und Kapital, Vol. 47 (2014), Iss. 2 : pp. 297–340
Abstract
Currency debasement, defined as a loss of precious metal content (intrinsic value) of the circulating penny currencies over time, was a common feature in the monetary history of Europe, c. 1400–1900. Over the centuries the loss rate was sustained; between 1400 and 1900 A. D. the (south) German penny currencies lost close to 90 per cent of their intrinsic value. As prior to the twentieth century all circulating means of exchange derived their purchasing power from the value of the precious metal contained in them these debasements reflect considerable fluctuations in these coins" exchange value. Whilst some of the possible origins of this have been addressed by previous research, comprehensive models are missing, and the social and economic consequences of this phenomenon have only seldom been studied. The present paper contributes to the debate, using long-run data on the circulating small change currencies in the German lands, c.1400–1900. After an introduction (I.) the second section puts the present case study into an international, historical and conceptual context (II.). A third section provides a brief sketch of German monetary history since the Middle Ages with special regard to penny currency debasement (III.). A fourth section analyses some of the reasons for this, highlighting further areas and directions of research which previous models have missed (IV.). A fifth section studies the social and economic costs of monetary fragmentation and coin debasement (V.). A sixth section concludes (VI.).
Journal Article Details
Publisher Name: Global Science Press
Language: English
DOI: https://doi.org/10.3790/ccm.47.2.297
Credit and Capital Markets – Kredit und Kapital, Vol. 47 (2014), Iss. 2 : pp. 297–340
Published online: 2014-06
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 44
Keywords: B110 E41 E42 E52 N13 Money Demand Currency Gold Gold Standard Seigniorage Silver Standard Specie Deflation GNP Money Velocity Growth Inflation Monetary Policy Monetary Regime Monetary Standard Monetary System Quantity Theory of Money Velocity of Money Bimetallism Bullion Coinage Commodity Standard Currencies
Author Details
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