A Method for Estimating Distributed Lags when Observations are Randomly Missing. (2002)
Hinich,Melvin J., Weber,Warren E.
This paper presents a frequency-domain technique for estimating distributed lag coefficients (the impulse-response function) when observations are randomly missed. The technique treats stationary...
An Evaluation of MIL-Prime in Comparison with the Traditional Specification System. (2002)
Stearman,Ricky T., Weber,Warren E.
Mil-Prime is a relatively new Air Force concept for writing contract specifications. Its intent is to emphasize the writing of requirements and their verification in functional terms related as...
A Model of Commodity Money, With Applications to Gresham's Law and the Debasement Puzzle (2001)
Francois R. Velde, Warren E. Weber, Randall Wright
We develop a model of commodity money and use it to analyze the following two questions motivated by issues in monetary history: What are the conditions under which Gresham's Law holds? And, what are...
Lessons from a laissez-faire payments system : the Suffolk Banking System (1825-58)
Arthur J. Rolnick, Bruce D. Smith, Warren E. Weber
A classic example of a privately created interbank payments system was operated by the Suffolk Bank of New England (1825-58). Known as the Suffolk Banking System, it was the nation's first regionwide...
Interest rates under the U.S. national banking system
Bruce A. Champ, Neil Wallace, Warren E. Weber
According to previous studies, the demand-liability feature of national bank notes did not present a problem for note-issuing banks because the nonbank public treated notes and other currency as...
Inflation, money, and output under alternative monetary standards
Arthur J. Rolnick, Warren E. Weber
Our study examines whether there is a systematic relationship between the monetary standard under which a country operates and the rate of inflation it experiences. It also explores whether there are...
A model of commodity money, with applications to Gresham's law and the debasement puzzle
Francois R. Velde, Warren E. Weber, Randall Wright
We develop a model of commodity money and use it to analyze the following two questions motivated by issues in monetary history: What are the conditions under which Gresham's Law holds? And, what are...
Gresham's law or Gresham's fallacy?
Arthur J. Rolnick, Warren E. Weber
In this article, the authors argue the answer to their title depends on whether a qualifier is added to the standard version of the law that "bad money drives out good." By examining several...
Were U.S. State Banknotes Priced as Securities?
banknotes, asset pricing, state banks
Francois R. Velde, Warren E. Weber
Bimetallism has been the subject of considerable debate: Was it a viable monetary system? Was it desirable? In our model, the amounts of each metal are split between coined metal, satisfying a...
Explaining the demand for free bank notes
Arthur J. Rolnick, Warren E. Weber
Free banking ; Bank notes
Gresham's law or Gresham's fallacy?
Arthur J. Rolnick, Warren E. Weber
In this article, the authors argue the answer to their title depends on whether a qualifier is added to the standard version of the law that "bad money drives out good." By examining several...
Do sterilized interventions affect exchange rates?
Foreign exchange - Law and legislation
Explaining the demand for free bank notes
Arthur J. Rolnick, Warren E. Weber
Banks and banking - History ; Banks and banking - Minnesota
Resolving the national bank note paradox
Bruce Champ, Neil Wallace, Warren E. Weber
During the 1882_1914 period, U.S. national banks could issue circulating notes backed by specified government securities. Earlier attempts to explain yields on those securities by costs of note issue...
In order to form a more perfect monetary union
Arthur J. Rolnick, Bruce D. Smith, Warren E. Weber
Why did states agree to a U.S. Constitution that prohibits them from issuing their own money? This article argues that two common answers to this question—a fear of inflation and a desire to...
This article describes three long-run monetary facts derived by examining data for 110 countries over a 30-year period, using three definitions of a country's money supply and two subsamples of...
Will the new $100 bill decrease counterfeiting?
Edward J. Green, Warren E. Weber
A current U.S. policy is to introduce a new style of currency that is harder to counterfeit, but not immediately to withdraw from circulation all of the old-style currency. This policy is analyzed in...
The debasement puzzle: an essay on medieval monetary history
Arthur J. Rolnick, Francois R. Velde, Warren E. Weber
This study establishes several facts about medieval monetary debasements: they were followed by unusually large minting volumes and by increased seigniorage; old and new coins circulated...
Money, inflation, and output under fiat and commodity standards
Arthur J. Rolnick, Warren E. Weber
This study examines the behavior of money, inflation, and output under fiat and commodity standards to better understand how changes in monetary policy affect economic activity. Using long-term...
Lessons from a laissez-faire payments system: the Suffolk Banking System (1825-58)
Arthur J. Rolnick, Bruce D. Smith, Warren E. Weber
A classic example of a privately created interbank payments system was operated by the Suffolk Bank of New England (1825–58). Known as the Suffolk Banking System, it was the nation’s first...
The Suffolk Bank and the Panic of 1837
Arthur J. Rolnick, Bruce D. Smith, Warren E. Weber
The Suffolk Bank in Boston is well known as having been the clearinghouse for virtually all the banknotes that circulated in New England between 1836 and 1858. An examination of 19th century bank...
This study describes and reconciles two common, seemingly contradictory views about a key monetary policy relationship: that between money and interest rates. Data since 1960 for about 40 countries...
Interbank payments relationships in the antebellum United States: evidence from Pennsylvania
This article investigates U.S. interbank relationships before the Civil War using previously unknown data for Pennsylvania banks from 1851 to 1859 that disaggregate the amounts due from other banks...
Laurence Ales, Francesca Carapella, Pricila Maziero, Warren E. Weber
Prior to 1863, state-chartered banks in the United States issued notes?dollar-denominated promises to pay specie to the bearer on demand. Although these notes circulated at par locally, they usually...
Indexation as a response to inflation : an examination
James F. Tucker, Warren E. Weber
Inflation (Finance)
Early state banks in the United States: how many were there and where did they exist?
This article describes a newly constructed data set of all U.S. state banks from 1782 to 1861. It contains the names and locations of all banks and branches that went into business and an estimate of...
Early State Banks in the United States: How Many Were There and When Did They Exist?
This article describes a newly constructed data set of all U.S. state banks from 1782 to 1861. It contains the names and locations of all banks and branches that went into business and an estimate of...
Coin sizes and payments in commodity money systems
Angela Redish, Warren E. Weber
Commodity money standards in medieval and early modern Europe were characterized by recurring complaints of small change shortages and by numerous debasements of the coinage. To confront these facts,...
A Model of Commodity Money, with Applications to Gresham's Law and the Debasement Puzzle
François R. Velde, Warren E. Weber, Randall Wright
What are the conditions under which Gresham's Law holds? And what are the mechanics of a debasement? To analyze these questions, we develop a model of commodity money with light and heavy coins,...
A method for estimating distributed lags when observations are randomly missing
Melvin J. Hinich, Warren E. Weber
This paper presents a frequency-domain technique for estimating distributed lag coefficients (the impulse-response function) when observations are randomly missed. The technique treats stationary...
The Free Banking Era: new evidence on laissez-faire banking
Arthur J. Rolnick, Warren E. Weber
The purpose of this paper is to begin a reevaluation of the Free Banking Era by developing and examining individual bank information on the population of banks which existed under the free banking...
A new explanation for free bank failures
Arthur J. Rolnick, Warren E. Weber
This paper surveys recent issues in macroeconomics from the viewpoint of dynamic economic theory. The need to look beyond demand and supply curves and the insights that come from doing so are...
Gresham's law or Gresham's fallacy?
Arthur J. Rolnick, Warren E. Weber
The claim that bad money drives out good is one of the oldest and most cited in economics. Economists refer to this claim as Gresham’s law. Yet despite its seemingly universal acceptance, this...
Output variability in an open-economy macro model with variance-dependent parameters
This paper analyzes the variability of output under money supply and exchange rate rules in an open economy in which the slope of the aggregate supply curve depends on the variances of aggregate...
Explaining the demand for free bank notes
Arthur J. Rolnick, Warren E. Weber
This paper explains why the risky notes of banks established during the Free Banking Era (1837–63) were demanded even when relatively safe specie (gold and silver coin) was an alternative. Free...
Estimating linear filters with errors in variables using the Hilbert transform
Melvin J. Hinich, Warren E. Weber
In this paper we present a consistent estimator for a linear filter (distributed lag) when the independent variable is subject to observational error. Unlike the standard errors-in-variables...
Were U.S. state banknotes priced as securities?
This study examines the pricing of U.S. state banknotes before 1860 using data on the discounts on these notes as quoted in banknote reporters in New York, Philadelphia, Cincinnati, and Cleveland....
A model of commodity money, with applications to Gresham's Law and the debasement puzzle
Francois R. Velde, Warren E. Weber, Randall Wright
We develop a model of commodity money and use it to analyze the following two questions motivated by issues in monetary history: What are the conditions under which Gresham's Law holds? And, what are...
Lessons from a laissez-faire payments system: the Suffolk Banking System, 1825-58
Arthur J. Rolnick, Bruce D. Smith, Warren E. Weber
Suffolk Banking System ; Banks and banking - History ; Payment systems ; Banks and banking - New England ; Clearinghouses (Banking)
Francois R. Velde, Warren E. Weber
Bimetallism has been the subject of considerable debate: Was it a viable monetary system? Was it a desirable system? In our model, the (exogenous and stochastic) amount of each metal can be split...
Private money creation and the Suffolk Banking System
Bruce D. Smith, Warren E. Weber
Bank notes ; Banks and banking - History
Redemption costs and interest rates under the U.S. National Banking System
Bruce Champ, Scott Freeman, Warren E. Weber
Banks and banking - History
Inherent instability in banking: the free banking experience
Arthur J. Rolnick, Warren E. Weber
Free banking ; Banks and banking - History
Inflation and money growth under alternative monetary standards
Arthur J. Rolnick, Warren E. Weber
Inflation (Finance) ; Money ; Monetary policy
The debasement puzzle: an essay on medieval monetary policy
Arthur J. Rolnick, François R. Velde, Warren E. Weber
This paper establishes the stylized fact that medieval debasements were accompanied by unusually large minting volumes and revenues. This fact is a puzzle under the commonly held view that metallic...
Will the new $100 bill decrease counterfeiting?
Edward J. Green, Warren E. Weber
A current U.S. policy is to introduce a new style of currency that is harder to counterfeit, but not immediately to withdraw from circulation all of the old-style currency. This policy is analyzed in...
Lessons from a laissez-faire payments system: the Suffolk Banking System (1825–1858)
Arthur J. Rolnick, Bruce D. Smith, Warren E. Weber
The classic example of a privately created and well-functioning interbank payments system is the Suffolk Banking System that existed in New England between 1825 and 1858. This System, operated by the...
François R. Velde, Warren E. Weber
Bimetallism has been the subject of considerable debate: Was it a viable monetary system? Was it a desirable system? In our model, the (exogenous and stochastic) amount of each metal can be split...
The Suffolk Banking System reconsidered
Arthur J. Rolnick, Warren E. Weber
The best-known example of a privately created and well-functioning interbank payments system is the Suffolk Banking System. Operating in New England between 1825 and 1858, it was the first regionwide...
Private money creation and the Suffolk Banking System
Bruce D. Smith, Warren E. Weber
Electronic commerce ; Money
The Suffolk Bank and the Panic of 1837: how a private bank acted as a lender-of-last-resort
Arthur J. Rolnick, Bruce D. Smith, Warren E. Weber
Suffolk Banking System
Costly banknote issuance and interest rates under the national banking system
Antoine Martin, Cyril Monnet, Warren E. Weber
The behavior of interest rates under the U.S. National Banking System is puzzling because of the apparent presence of persistent and large unexploited arbitrage opportunities for note issuing banks....
Fernando Alvarez, Warren E. Weber
Monetary policy ; Interest rates ; Inflation (Finance)
Banknote prices in the United States prior to 1860
This paper examines the pricing of statebank notes prior to 1860 using data on the discounts on these notes as quoted in New York, Philadelphia, Cincinnati, and Cleveland. The study is organized...
Early state banks in the United States: how many were there and when did they exist?
This paper describes a newly constructed data set of all U.S. state banks from 1782 to 1861. It contains the names and locations of all banks and branches that went into business and an estimate of...
New evidence on state banking before the Civil War
Prior to the Civil War there were three major differences among states in how U.S. banks were regulated: (1) Whether they were established by charter or under free-banking laws. (2) Whether they were...
Private money creation and the Suffolk Banking System
Bruce D. Smith, Warren E. Weber
Recent legislation has removed U.S. legal impediments to issuing private bank notes. At the same time, improved transaction technologies have enabled banks and other entities to issue various forms...
Redemption Costs and Interest Rates under the U.S. National Banking System.
Champ, Bruce, Freeman, Scott, Weber, Warren E
Interest rates under the U.S. National Banking System (1863-1914) appear to imply that banks failed to exploit an arbitrage opportunity for two reasons: yields on government bonds exceeded the tax...
Private Money Creation and the Suffolk Banking System.
Smith, Bruce D, Weber, Warren E
Many have argued that private provision of close currency substitutes may lead to large scale indeterminacies and excessive economic fluctuations. Others argue that money creation can be "left to the...
Ales, Laurence, Carapella, Francesca, Maziero, Pricila, Weber, Warren E.
Prior to 1863, state-chartered banks in the United States issued notes--dollar-denominated promises to pay specie to the bearer on demand. Although these notes circulated at par locally, they usually...
Money, Inflation, and Output under Fiat and Commodity Standards.
Rolnick, Arthur J, Weber, Warren E
The authors examine the behavior of money, inflation, and output under fiat and commodity standards to better understand how changes in monetary policy affect economic activity. Using long-term...
Coin sizes and payments in commodity money systems
Angela Redish, Warren E. Weber
Contemporaries, and economic historians, have noted several features of medieval and early modern European monetary systems that are hard to analyze using models of centralized exchange. For example,...