Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56243
Authors: 
Hortlund, Per
Year of Publication: 
2005
Series/Report no.: 
SSE/EFI Working Paper Series in Economics and Finance 613
Abstract: 
The working of the asset currency provided by the Swedish note banking system in 1878-1901 is described. Natural and institutional conditions caused the demand for currency to peak in March and September, with troughs in July and January. The paper investigates how the Enskilda banks provided liquidity to solve the problem. This is done by describing how the volume of notes varied over the year, and how other balance sheet items co-moved with them. Strong seasonal co-variation is found particularly between lending and foreign payments media, varying like communicating vessels over the sailing season in May-October (when the sea was ice free and shipments were made).
Subjects: 
Free banking
Elastic currency
Asset currency
Clearing mechanism
Note competition
Needs of trade
Lender of last resort
Sailing season
JEL: 
G21
N13
N23
Document Type: 
Working Paper

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