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The U.S. Constitution and Monetary Powers: An Analysis of the 1787 Constitutional Convention and How a Constitutional Transformation of the Nation's Monetary System Emerged

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Author Info
Farley Grubb () (Department of Economics,University of Delaware)

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Abstract

The monetary powers embedded in the U.S. 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 the path the founding fathers took that led to the specific powers adopted is presented and deconstructed. Why they took this path rather than replicate the colonial system and why they codified such powers into supreme law rather than leave them to legislative debate are addressed.

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File URL: http://www.lerner.udel.edu/economics/WorkingPapers/2004/UDWP2004-08.pdf
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Publisher Info
Paper provided by University of Delaware, Department of Economics in its series Working Papers with number 04-08.

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Length: 58 pages
Date of creation: 2004
Date of revision:
Publication status: Published in Financial History Review, vol. 13, no. 1 (April, 2006), pp. 43-71.
Handle: RePEc:dlw:wpaper:04-08

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Postal: Purnell Hall, Newark, Delaware 19716
Fax: (302) 831-6968
Web page: http://www.lerner.udel.edu/departments/economics/
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Related research
Keywords: Monetary Policy;

Find related papers by JEL classification:
N1 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations

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This page was last updated on 2009-12-23.


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