TY - JOUR
T1 - The debasement puzzle
T2 - An essay on medieval monetary history
AU - Rolnick, Arthur J
AU - Velde, François R.
AU - Weber, Warren E.
PY - 1996/12
Y1 - 1996/12
N2 - We establish several facts about medieval monetary debasements: they were followed by unusually large minting volumes and by increased seigniorage; old and new coins circulated concurrently; and, at least some of the time, coins were valued by weight. These facts constitute a puzzle because debasements provide no additional inducements to bring coins to the mint. On theoretical and empirical grounds, we reject explanations based on by-tale circulation, nominal contracts, and sluggish price adjustment. We conclude that debasements pose a challenge to monetary economics.
AB - We establish several facts about medieval monetary debasements: they were followed by unusually large minting volumes and by increased seigniorage; old and new coins circulated concurrently; and, at least some of the time, coins were valued by weight. These facts constitute a puzzle because debasements provide no additional inducements to bring coins to the mint. On theoretical and empirical grounds, we reject explanations based on by-tale circulation, nominal contracts, and sluggish price adjustment. We conclude that debasements pose a challenge to monetary economics.
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U2 - 10.1017/S0022050700017472
DO - 10.1017/S0022050700017472
M3 - Review article
AN - SCOPUS:0242395595
SN - 0022-0507
VL - 56
SP - 789
EP - 808
JO - Journal of Economic History
JF - Journal of Economic History
IS - 4
ER -