A model of banknote discounts

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A model of banknote discounts

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 were quoted at the discount outside the local area. These discounts varied by both the location of the bank and the location where the discount was being quoted. Further, these discounts were asym...

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ژورنال

عنوان ژورنال: Journal of Economic Theory

سال: 2008

ISSN: 0022-0531

DOI: 10.1016/j.jet.2006.10.010