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Reconstruction of annual money supply over the long run: The case of England, 1279-1870

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  • Nuno Palma

    (European University Institue,University of Groningen)

Abstract

I provide the first annual time series of coin and money supply estimates for about six hundred years of English history. I propose two main estimation methods. The first, which I call the Òdirect methodÓ, is used to measure the value of government-provided, legal-tender coin supply only. Additionally, I propose an Òindirect methodÓ which relies on a combination of information about nominal GDP with the value of coin supply or M2 known at certain benchmark periods. The latter permits estimating the growth of financial intermediation over time. The new methodologies which I set out here may serve as a blueprint for a similar reconstruction of coin and money supply series for other economies for which analogous data is available.

Suggested Citation

  • Nuno Palma, 2016. "Reconstruction of annual money supply over the long run: The case of England, 1279-1870," Working Papers 0094, European Historical Economics Society (EHES).
    • Handle: RePEc:hes:wpaper:0094
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    References listed on IDEAS

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    Cited by:

    1. Melitz, Jacques & Edo, Anthony, 2019. "The Primary Cause of European Inflation in 1500-1700: Precious Metals or Population? The English Evidence," CEPR Discussion Papers 14023, C.E.P.R. Discussion Papers.
    2. Patrick K O'Brien & Nuno Palma, 2020. "Danger to the Old Lady of Threadneedle Street? The Bank Restriction Act and the regime shift to paper money, 1797–1821," European Review of Economic History, European Historical Economics Society, vol. 24(2), pages 390-426.

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    More about this item

    Keywords

    historical money supply; financial intermediation;

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913

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