Free or central banking? : Liquidity and financial deepening in Sweden, 1834–1913
(2006) In Explorations in Economic History 43(1). p.64-93- Abstract
- During Sweden’s nineteenth-century modernization, Enskilda banks contributed to economic expansion and integration by providing generally accepted means of payment beyond what would have been possible for the central bank, the Riksbank. The Riksbank was constrained by specie-convertibility requirements for Sweden’s currency. Contrary to previous arguments, however, the Enskilda banks did not operate according to free banking theory. The Enskilda banks held Riksbank notes instead of specie as base-money reserves. This arrangement led to a higher supply of formal liquidity than what would have been the case with either a free banking system or a pure deposit based commercial banking system. The consequence for Sweden was a rapid rate of... (More)
- During Sweden’s nineteenth-century modernization, Enskilda banks contributed to economic expansion and integration by providing generally accepted means of payment beyond what would have been possible for the central bank, the Riksbank. The Riksbank was constrained by specie-convertibility requirements for Sweden’s currency. Contrary to previous arguments, however, the Enskilda banks did not operate according to free banking theory. The Enskilda banks held Riksbank notes instead of specie as base-money reserves. This arrangement led to a higher supply of formal liquidity than what would have been the case with either a free banking system or a pure deposit based commercial banking system. The consequence for Sweden was a rapid rate of monetization and financial deepening. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/feb888d7-b109-4b92-bc64-99f37c79d5a5
- author
- Ögren, Anders LU
- publishing date
- 2006-01
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- central banking, classical silver and gold standards, fractional reserves, free banking, liquidity, money supply, E42, E51, N13, N23
- in
- Explorations in Economic History
- volume
- 43
- issue
- 1
- pages
- 30 pages
- publisher
- Elsevier
- external identifiers
-
- scopus:30344483221
- ISSN
- 0014-4983
- DOI
- 10.1016/j.eeh.2005.10.004
- language
- English
- LU publication?
- no
- id
- feb888d7-b109-4b92-bc64-99f37c79d5a5
- date added to LUP
- 2017-12-18 15:35:56
- date last changed
- 2022-04-25 04:35:00
@article{feb888d7-b109-4b92-bc64-99f37c79d5a5,
abstract = {{During Sweden’s nineteenth-century modernization, Enskilda banks contributed to economic expansion and integration by providing generally accepted means of payment beyond what would have been possible for the central bank, the Riksbank. The Riksbank was constrained by specie-convertibility requirements for Sweden’s currency. Contrary to previous arguments, however, the Enskilda banks did not operate according to free banking theory. The Enskilda banks held Riksbank notes instead of specie as base-money reserves. This arrangement led to a higher supply of formal liquidity than what would have been the case with either a free banking system or a pure deposit based commercial banking system. The consequence for Sweden was a rapid rate of monetization and financial deepening.}},
author = {{Ögren, Anders}},
issn = {{0014-4983}},
keywords = {{central banking; classical silver and gold standards; fractional reserves; free banking; liquidity; money supply; E42; E51; N13; N23}},
language = {{eng}},
number = {{1}},
pages = {{64--93}},
publisher = {{Elsevier}},
series = {{Explorations in Economic History}},
title = {{Free or central banking? : Liquidity and financial deepening in Sweden, 1834–1913}},
url = {{http://dx.doi.org/10.1016/j.eeh.2005.10.004}},
doi = {{10.1016/j.eeh.2005.10.004}},
volume = {{43}},
year = {{2006}},
}