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NATIONAL BUREAU OF ECONOMIC RESEARCH

Monetization and Growth in Colonial New England, 1703-1749

Peter L. Rousseau, Caleb Stroup

NBER Working Paper No. 16190
Issued in July 2010
NBER Program(s):   DAE

We examine econometrically the real effects of paper money's introduction into colonial New England over the 1703-1749 period. Departing from earlier analyses that focus primarily on the depreciation of paper money in the region, we show that expansion of the money stock promoted growth in modern sector activity and not the other way around. We also find that bills emitted for seigniorage purposes had a positive effect on the modern sector, while bills issued through loan banks did not.

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Document Object Identifier (DOI): 10.3386/w16190

Published: Rousseau, Peter L. & Stroup, Caleb, 2011. "Monetization and growth in colonial New England, 1703–1749," Explorations in Economic History, Elsevier, vol. 48(4), pages 600-613. citation courtesy of

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