Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/114475
Authors: 
Quinn, Stephen
Roberds, William
Year of Publication: 
2014
Series/Report no.: 
Working Paper, Federal Reserve Bank of Atlanta 2014-17
Abstract: 
The Dutch bank florin was the dominant currency in Europe during much of the 17th and 18th centuries. The florin, a fiat money, was managed by an early central bank, the Bank of Amsterdam. Using a new reconstruction of the Bank of Amsterdam's balance sheet, we analyze the florin's loss of reserve currency status during the period 1781-92. The reconstruction shows that by 1784, accommodative policies rendered the Bank of Amsterdam "policy insolvent," meaning that its net worth would have been negative under continuation of its policy objectives. Policy insolvency coincided with the Bank of Amsterdam's loss of control over the value of its money.
Subjects: 
central banks
reserve currency
policy insolvency
JEL: 
E58
F33
N13
Document Type: 
Working Paper

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