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Banks, Free Banks, And U.S. Economic Growth

  • MATTHEW JAREMSKI
  • PETER L. ROUSSEAU

The "Federalist financial revolution" may have jump-started the U.S. economy into modern growth, but the Free Banking System (1837-1862) did not play a direct role in sustaining it. Despite lowering entry barriers and extending banking into developing regions, we find in county-level data that free banks had little or no effect on growth. The result is not just a symptom of the era, as state-chartered banks seem to have strong and positive effects on manufacturing and urbanization.

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File URL: http://hdl.handle.net/10.1111/j.1465-7295.2012.00495.x
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Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 51 (2013)
Issue (Month): 2 (04)
Pages: 1603-1621

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Handle: RePEc:bla:ecinqu:v:51:y:2013:i:2:p:1603-1621
DOI: j.1465-7295.2012.00495.x
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  1. Scott L. Fulford, 2015. "How Important Are Banks for Development? National Banks in the United States, 1870-1900," The Review of Economics and Statistics, MIT Press, vol. 97(5), pages 921-938, December.
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