Colonial North Carolina’s Paper Money Regime, 1712-1774: A Comment on Cutsail and Grubb

19 Pages Posted: 28 Jun 2019

See all articles by Ronald W. Michener

Ronald W. Michener

University of Virginia - Department of Economics

Date Written: June 26, 2019

Abstract

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

Michener, Ronald W., Colonial North Carolina’s Paper Money Regime, 1712-1774: A Comment on Cutsail and Grubb (June 26, 2019). Available at SSRN: https://ssrn.com/abstract=3410525 or http://dx.doi.org/10.2139/ssrn.3410525

Ronald W. Michener (Contact Author)

University of Virginia - Department of Economics ( email )

P.O. Box 400182
Charlottesville, VA 22904-4182
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
13
Abstract Views
218
PlumX Metrics