Ratio Working Papers
The Provision of Liquidity in the Swedish Note Banking System 1878–1901
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 lend-ing 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).
Keywords: Free banking; Elastic currency; Asset currency; Clearing mechanism; Note competition; Needs of trade; Legal restrictions; Lender of last resort; Sailing season; (follow links to similar papers)
JEL-Codes: G21; N13; N23; (follow links to similar papers)
31 pages, January 3, 2005
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Martin Korpi ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom