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The US Constitution and monetary powers: an analysis of the 1787 constitutional convention and the constitutional transformation of the US monetary system

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  • GRUBB, FARLEY

Abstract

The monetary powers embedded in the US Constitution were revolutionary and led to a watershed transformation in the nation s monetary structure. They included determining what monies could be legal tender, who could emit fiat paper money, and who could incorporate banks. How the debate at the 1787 constitutional convention over these powers evolved and led the founding fathers to the specific powers adopted is presented and deconstructed. Why they took this path rather than replicate the successful colonial system and why they codified such powers into supreme law rather than leaving them to legislative debate and enactment are addressed.

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Bibliographic Info

Article provided by Cambridge University Press in its journal Financial History Review.

Volume (Year): 13 (2006)
Issue (Month): 01 (April)
Pages: 43-71

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Handle: RePEc:cup:fihrev:v:13:y:2006:i:01:p:43-71_00

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Cited by:
  1. Farley Grubb, 2007. "The Net Worth of the US Federal Government, 1784–1802," American Economic Review, American Economic Association, vol. 97(2), pages 280-284, May.

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