Colonial North Carolina’s Paper Money Regime, 1712-1774: A Comment on Cutsail and Grubb
19 Pages Posted: 28 Jun 2019
Date Written: June 26, 2019
In a recent NBER paper, Cutsail and Grubb argue that North Carolina’s colonial bills of credit were valued like discount bonds, with a current market value largely determined by the discounted value of the bills when paid into the treasury in taxes or other public payments. Grubb has previously published several papers making similar claims about other colonies. This comment argues Cutsail and Grubb’s methodology, history, data series, and econometrics, as applied to North Carolina, are all seriously flawed.
Keywords: currency, American colonies, North Carolina, bills of credit, paper money
JEL Classification: N11, N21, N41, E59
Suggested Citation: Suggested Citation