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The Bank of Amsterdam’s Search for Success and Stability

  • Stephen Quinn
  • William Roberds
Chapter
Part of the Palgrave Studies in the History of Finance book series (PSHF)

Abstract

To succeed as a source of international money, the Bank of Amsterdam had to make its ledger money more of a complement to coins than a substitute for coins. To steady both the quantity and price of its money, the Bank actively used open market operations, buying trade coins with credits of bank accounts and selling domestic coins to debit bank accounts. The result was a stable money in great demand for most of the 1700s, save for two exceptions. During the Seven Years War, people put more coins into the Bank than it could sterilize. During the Fourth Anglo-Dutch War, in contrast, the Bank became permanently unpopular. The Bank’s rise and fall demonstrate the difficulties in acquiring and then maintaining a dominant monetary status.

Keywords

Safe asset Bank of Amsterdam Central bank Fiat money Receipts (repurchase agreements) Open market operations 

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Stephen Quinn
    • 1
  • William Roberds
    • 2
  1. 1.Texas Christian UniversityFort WorthUSA
  2. 2.Federal Reserve Bank of AtlantaAtlantaUSA

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