IDEAS home Printed from https://ideas.repec.org/p/lui/lleewp/12100.html
   My bibliography  Save this paper

The Acceptability of Money with Multiple Notes Issuers:the Case of Italy (1861-1893)

Author

Listed:
  • Fabrizio Mattesini

    (Università di Roma "Tor Vergata")

  • Giuseppina Gianfreda

    (Università della Tuscia)

Abstract

We study the Italian monetary regime from 1861 to the creation of the Bank of Italy in 1893. The regime was characterized by a multi- plicity of note issuers although one of them, the BNS, rapidly became the dominant bank of the country following a process of territorial expansion. We carefully describe the evolution of the system and we analyze its functioning by studying the acceptaibility of banknotes. Since by law banknotes had to be redeemed at par, acceptability is measured by the number of days notes were in circulation. We es- timate the acceptability of the BNS notes in the provinces were the bank had branches and we ?nd that the entry of a smaller issuer lim- ited the capacity of the dominant bank to keep its notes in circulation at local level. We take this as evidence that competition in notes issue worked as an e¤ective discipline device and we argue the fall of the sys- tem should not be readily attributed to the failure of the competittive mechanism.

Suggested Citation

  • Fabrizio Mattesini & Giuseppina Gianfreda, 2012. "The Acceptability of Money with Multiple Notes Issuers:the Case of Italy (1861-1893)," Working Papers LuissLab 12100, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    • Handle: RePEc:lui:lleewp:12100
    as

    Download full text from publisher

    File URL: http://static.luiss.it/RePEc/pdf/lleewp/12100.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fenoaltea,Stefano, 2014. "The Reinterpretation of Italian Economic History," Cambridge Books, Cambridge University Press, number 9781107658080, October.
    2. Rajan, Raghuram G & Zingales, Luigi, 1998. "Financial Dependence and Growth," American Economic Review, American Economic Association, vol. 88(3), pages 559-586, June.
    3. Fenoaltea, Stefano, 2005. "The growth of the Italian economy, 1861–1913: Preliminary second-generation estimates," European Review of Economic History, Cambridge University Press, vol. 9(3), pages 273-312, December.
    4. Giuseppina Gianfreda & Nathalie Janson, 2001. "Le banche di emissione in Italia tra il 1861 e il 1893: un caso di concorrenza?," Rivista di Politica Economica, SIPI Spa, vol. 91(1), pages 15-74, January.
    5. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sangyup Choi & Davide Furceri & João Tovar Jalles, 2022. "Heterogeneous gains from countercyclical fiscal policy: new evidence from international industry-level data [Optimal investment with costly reversibility]," Oxford Economic Papers, Oxford University Press, vol. 74(3), pages 773-804.
    2. Thomas, Ashok & Spataro, Luca & Mathew, Nanditha, 2014. "Pension funds and stock market volatility: An empirical analysis of OECD countries," Journal of Financial Stability, Elsevier, vol. 11(C), pages 92-103.
    3. Sena Kimm Gnangnon, 2019. "Remittances Inflows and Trade Policy," Remittances Review, Remittances Review, vol. 4(2), pages 117-142, October.
    4. Fenoaltea, Stefano, 2018. "The Growth of the Italian Economy, 1861−1913: The Composition Of Investment," MPRA Paper 88138, University Library of Munich, Germany.
    5. Fenoaltea, Stefano, 2018. "The Growth of the Italian Economy, 1861-1913: Revised Second-Generation Expenditure-Side Estimates," MPRA Paper 88016, University Library of Munich, Germany.
    6. Fenoaltea, Stefano, 2018. "Spleen: the failures of the cliometric school," MPRA Paper 90210, University Library of Munich, Germany.
    7. Emanuele Felice & Josep Pujol Andreu, 2013. "GDP and life expectancy in Italy and Spain over the long-run (1861-2008): insights from a time-series approach," UHE Working papers 2013_06, Universitat Autònoma de Barcelona, Departament d'Economia i Història Econòmica, Unitat d'Història Econòmica.
    8. Vighneswara Swamy & Munusamy Dharani, 2021. "Thresholds in finance–growth nexus: Evidence from G‐7 economies," Australian Economic Papers, Wiley Blackwell, vol. 60(1), pages 1-40, March.
    9. Lim, Jamus Jerome, 2019. "Growth in the shadow of debt," Journal of Banking & Finance, Elsevier, vol. 103(C), pages 98-112.
    10. Sourafel Girma & Sandra Lancheros & Alejandro Riaño, 2016. "Global Engagement and Returns Volatility," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(6), pages 814-833, December.
    11. Emanuele Felice, 2019. "Rethinking the take-off: the role of services in the new economic history of Italy (1861–1951)," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 13(3), pages 405-442, September.
    12. Paolo Di Martino & Barbara Pistoresi & Alberto Rinaldi, 2016. "International financial flows, domestic banks, and the economic development of the periphery: Italy, 1861-1913," Department of Economics 0104, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    13. Giovanni Federico & Antonio Tena-Junguito, 2014. "The ripples of the industrial revolution: exports, economic growth, and regional integration in Italy in the early nineteenth century," European Review of Economic History, European Historical Economics Society, vol. 18(3), pages 349-369.
    14. Stefano Fenoaltea, 2020. "The fruits of disaggregation: The engineering industry, tariff protection, and the industrial investment cycle in Italy, 1861-1913," PSL Quarterly Review, Economia civile, vol. 73(292), pages 77-110.
    15. Federico, Giovanni, 2013. "The ripples of the Industrial revolution: exports, economic growth and regional integration in Italy in the early 19th century," IFCS - Working Papers in Economic History.WH wp13-02, Universidad Carlos III de Madrid. Instituto Figuerola.
    16. Andrea Incerpi & Barbara Pistoresi & Alberto Rinaldi, 2020. "Finance and Development in Italy, 1870-1913," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(9), pages 1-95, September.
    17. Zamon Haldarov & Dimitrios Asteriou & Emmanouil Trachanas, 2022. "The impact of bank ownership on lending behavior: Evidence from the 2008–2009 financial crisis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 2006-2025, April.
    18. Alin Marius ANDRIEȘ & Sabina CAZAN & Nicu SPRINCEAN, 2022. "The Nexus between Bank M&As and Financial Development," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 5-28, April.
    19. Andrea Incerpi & Barbara Pistoresi & Alberto Rinaldi, 2020. "Finance and Economic Development in Italy, 1870-1913," Department of Economics 0162, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    20. Makiko Hino & Mototsugu Fukushige, 2014. "Catching up and falling behind in technological progress: the experience of the textile and chemical industries in Italy between 1904 and 1937," Discussion Papers in Economics and Business 14-14, Osaka University, Graduate School of Economics.

    More about this item

    Keywords

    money acceptability; notes redemption; multiple issuers.;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lui:lleewp:12100. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Giovanna Vallanti (email available below). General contact details of provider: https://edirc.repec.org/data/deluiit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.