Flandreau M. et al. (2009) Financiers without borders

September 6, 2009

Flandreau, Marc, Christophe Galimard, Clemens Jobst and Pilar Nogués-Marco (2009) “Monetary Geography Before the Industrial Revolution”, CEPR, DP7169, 25p.

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Some argue that national moneys have been constructed by states, but not before the 19th century. Prior, during the 18th century, there were no monetary borders to speak of and local markets were integrated by the ubiquitous bills of exchange; regulation remaining at a sub-national level (cities; p.1). Others have pointed out that the financial geography was not that seamless and that a shape arose from endogenous elements (transaction costs, agglomeration economies, etc.). Finally, institutionalist economists have argued that factors such as parliaments and constitutions were critical in the dawn of international finance (p.2). Read the rest of this entry »