The national bank note puzzle reinterpreted.: An article from: Journal of Money, Credit & Banking
Book Details
Author(s)Phillip Cagan, Anna J. Schwartz
PublisherOhio State University Press
ISBN / ASINB00092HVUG
ISBN-13978B00092HVU3
MarketplaceFrance 🇫🇷
Description
This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on August 1, 1991. The length of the article is 6986 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the supplier: We previously calculated the profit in issuing notes by national banks to be quite attractive after the late 1890s until all notes were retired in 1935. Yet the banks took until the 1920s to approach the maximum quantity allowed. Proposed explanations in the subsequent literature of this slow response were that redemption costs made note issues unprofitable or that banks had more attractive alternative investments. We show that these explanations are not satisfactory, and that a reinterpretation of the puzzle is why banks did not bid up the market prices of the eligible bonds to reflect their value in securing note issues. (Printed by permission of the publisher.)
Citation Details
Title: The national bank note puzzle reinterpreted.
Author: Phillip Cagan
Publication:Journal of Money, Credit & Banking (Refereed)
Date: August 1, 1991
Publisher: Ohio State University Press
Volume: v23 Issue: n3(1-2) Page: p293(15)
Distributed by Thomson Gale
From the supplier: We previously calculated the profit in issuing notes by national banks to be quite attractive after the late 1890s until all notes were retired in 1935. Yet the banks took until the 1920s to approach the maximum quantity allowed. Proposed explanations in the subsequent literature of this slow response were that redemption costs made note issues unprofitable or that banks had more attractive alternative investments. We show that these explanations are not satisfactory, and that a reinterpretation of the puzzle is why banks did not bid up the market prices of the eligible bonds to reflect their value in securing note issues. (Printed by permission of the publisher.)
Citation Details
Title: The national bank note puzzle reinterpreted.
Author: Phillip Cagan
Publication:Journal of Money, Credit & Banking (Refereed)
Date: August 1, 1991
Publisher: Ohio State University Press
Volume: v23 Issue: n3(1-2) Page: p293(15)
Distributed by Thomson Gale
