Multiple paper monies in Sweden, 1789-1903: Substitution or complementarity?
(2008) In Financial History Review 15(1). p.73-91- Abstract
- In relation to other European economies, Sweden experienced both an early and
a widespread circulation of officially sanctioned paper monies of various origins. In 1661, the short-lived Stockholm Banco started to issue copper notes which came to circulate above par value. A few years later, the Parliament opened its own bank, Rikets Ständers Bank, literally meaning the Parliament’s Bank, now known as the Riksbank. It started to issue something similar to certified cheques in 1701, which circulated as paper money side by side with specie money. In 1745 most specie was drawn out of circulation and Sweden went on a paper standard. This time the Riksbank started to issue notes with printed denominations. Since then, the Swedish money... (More) - In relation to other European economies, Sweden experienced both an early and
a widespread circulation of officially sanctioned paper monies of various origins. In 1661, the short-lived Stockholm Banco started to issue copper notes which came to circulate above par value. A few years later, the Parliament opened its own bank, Rikets Ständers Bank, literally meaning the Parliament’s Bank, now known as the Riksbank. It started to issue something similar to certified cheques in 1701, which circulated as paper money side by side with specie money. In 1745 most specie was drawn out of circulation and Sweden went on a paper standard. This time the Riksbank started to issue notes with printed denominations. Since then, the Swedish money supply has mainly consisted of paper money. In 1789, the National Debt Office (Riksgäldskontoret) started to issue large quantities of small-denomination interest-bearing promissory notes, which circulated simultaneously with the Riksbank notes for forty years. In 1831, Enskilda (private) banks began to issue notes that circulated side by side with the Riksbank notes for another seventy years. Besides these more officially sanctioned notes, the Swedish money supply also consisted of a mixture of notes issued by a variety of organisations and individuals. It is clear that during most of the period from 1789 to 1903, multiple paper monies circulated in Sweden. Cases like the Swedish have not attracted much research with theoretical ambitions. Most monetary theorists assume the normality of homogenous monetary systems and the neutrality of money. There seems to be much in favour of one type of (national) money. In a multiple currency system, the main difficulty has been to achieve and maintain stable value relations between different monies in use. Both instability as such and the attempts to stabilise relative values have increased monetary transaction costs. (Less)
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- author
- Ögren, Anders LU and Engdahl, Torbjörn
- publishing date
- 2008
- type
- Contribution to journal
- publication status
- published
- subject
- in
- Financial History Review
- volume
- 15
- issue
- 1
- pages
- 22 pages
- publisher
- Cambridge University Press
- external identifiers
-
- scopus:41849118388
- ISSN
- 0968-5650
- DOI
- 10.1017/S0968565008000061
- language
- English
- LU publication?
- no
- id
- b1ad62ac-a3d5-404f-ace0-5e764f94a113
- date added to LUP
- 2017-12-18 15:17:09
- date last changed
- 2022-01-31 00:44:02
@article{b1ad62ac-a3d5-404f-ace0-5e764f94a113,
abstract = {{In relation to other European economies, Sweden experienced both an early and<br/>a widespread circulation of officially sanctioned paper monies of various origins. In 1661, the short-lived Stockholm Banco started to issue copper notes which came to circulate above par value. A few years later, the Parliament opened its own bank, Rikets Ständers Bank, literally meaning the Parliament’s Bank, now known as the Riksbank. It started to issue something similar to certified cheques in 1701, which circulated as paper money side by side with specie money. In 1745 most specie was drawn out of circulation and Sweden went on a paper standard. This time the Riksbank started to issue notes with printed denominations. Since then, the Swedish money supply has mainly consisted of paper money. In 1789, the National Debt Office (Riksgäldskontoret) started to issue large quantities of small-denomination interest-bearing promissory notes, which circulated simultaneously with the Riksbank notes for forty years. In 1831, Enskilda (private) banks began to issue notes that circulated side by side with the Riksbank notes for another seventy years. Besides these more officially sanctioned notes, the Swedish money supply also consisted of a mixture of notes issued by a variety of organisations and individuals. It is clear that during most of the period from 1789 to 1903, multiple paper monies circulated in Sweden. Cases like the Swedish have not attracted much research with theoretical ambitions. Most monetary theorists assume the normality of homogenous monetary systems and the neutrality of money. There seems to be much in favour of one type of (national) money. In a multiple currency system, the main difficulty has been to achieve and maintain stable value relations between different monies in use. Both instability as such and the attempts to stabilise relative values have increased monetary transaction costs.}},
author = {{Ögren, Anders and Engdahl, Torbjörn}},
issn = {{0968-5650}},
language = {{eng}},
number = {{1}},
pages = {{73--91}},
publisher = {{Cambridge University Press}},
series = {{Financial History Review}},
title = {{Multiple paper monies in Sweden, 1789-1903: Substitution or complementarity?}},
url = {{http://dx.doi.org/10.1017/S0968565008000061}},
doi = {{10.1017/S0968565008000061}},
volume = {{15}},
year = {{2008}},
}