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Paper Money and Inflation in Colonial America

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  • Owen F. Humpage

Abstract

Inflation is often thought to be the result of excessive money creation?too many dollars chasing too few goods. While in principle this is true, in practice there can be a lot of leeway, so long as trust in the monetary authority?s ability to keep things under control remains high. The American colonists? experience with paper money illustrates how and why this is so and offers lessons for the modern day.

Suggested Citation

  • Owen F. Humpage, 2015. "Paper Money and Inflation in Colonial America," Economic Commentary, Federal Reserve Bank of Cleveland, issue May.
    • Handle: RePEc:fip:fedcec:00035
    DOI: 10.26509/frbc-ec-201506
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    References listed on IDEAS

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    1. West, Robert Craig, 1978. "Money in the Colonial American Economy," Economic Inquiry, Western Economic Association International, vol. 16(1), pages 1-15, January.
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