Herger, Nils (2022). Unregulated and regulated free banking: Evidence from the case of Switzerland (1826-1907). Explorations in economic history, 83, p. 101423. Elsevier 10.1016/j.eeh.2021.101423
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This paper provides a reassessment of the free-banking history of Switzerland, which included both a period of unfettered competition (1826–1881) and one of strong banknote regulation (1881–1907). Unfettered competition between note-issuing banks gave rise to a fragmented paper-money system, with limited liquidity banknotes. To increase confidence in these notes, the federal government introduced a minimum-reserve requirement and a mutual-conversion rule in 1881. Based on a theoretical model and new empirical evidence, this paper shows that this enhanced regulation came at a cost, as it led to the overissuing of banknotes and an inelastic paper-money supply.
Item Type: |
Journal Article (Original Article) |
|---|---|
Division/Institute: |
03 Faculty of Business, Economics and Social Sciences > Department of Economics |
UniBE Contributor: |
Herger, Nils |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics |
ISSN: |
0014-4983 |
Publisher: |
Elsevier |
Language: |
English |
Submitter: |
Dino Collalti |
Date Deposited: |
27 Jan 2022 15:49 |
Last Modified: |
05 Dec 2022 16:00 |
Publisher DOI: |
10.1016/j.eeh.2021.101423 |
BORIS DOI: |
10.48350/163364 |
URI: |
https://boris.unibe.ch/id/eprint/163364 |
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