IDEAS home Printed from https://ideas.repec.org/a/eee/exehis/v49y2012i3p303-315.html
   My bibliography  Save this article

The international political economy of early modern copper mercantilism: Rent seeking and copper money in Sweden 1624–1776

Author

Listed:
  • Edvinsson, Rodney

Abstract

In 1624–1776 Sweden minted intrinsic value copper coins, alongside silver coins. One purpose behind introducing the copper standard was to use its monopoly position at the European markets to manipulate the international copper prices, implementing a kind of copper mercantilism. This paper presents a model of an early modern copper monopolist that could price discriminate between two different uses for copper: copper for export and copper for minting. The paper concludes that authorities did not completely conform to this rent-seeking model, since there were also other considerations behind minting policy, such as providing a stable monetary system. The model shows that under profit-maximisation minting should have been even higher and the price of copper money lower, but at periods minting and prices approached the optimal state. In the 17th century, the market for copper money was probably too small relative the huge copper production, but by the 1720s and 1730s, when copper production had declined, the copper standard functioned more smoothly.

Suggested Citation

  • Edvinsson, Rodney, 2012. "The international political economy of early modern copper mercantilism: Rent seeking and copper money in Sweden 1624–1776," Explorations in Economic History, Elsevier, vol. 49(3), pages 303-315.
  • Handle: RePEc:eee:exehis:v:49:y:2012:i:3:p:303-315 DOI: 10.1016/j.eeh.2012.05.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0014498312000174
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. N. J. Mayhew, 1995. "Population, money supply, and the velocity of circulation in England, 1300–1700," Economic History Review, Economic History Society, vol. 48(2), pages 238-257, May.
    2. Friedman, Milton, 1990. "Bimetallism Revisited," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 85-104, Fall.
    3. Schmalensee, Richard, 1981. "Output and Welfare Implications of Monopolistic Third-Degree Price Discrimination," American Economic Review, American Economic Association, vol. 71(1), pages 242-247, March.
    4. Sargent, Thomas J & Velde, Francois R, 1999. "The Big Problem of Small Change," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 31(2), pages 137-161, May.
    5. Redish,Angela, 2006. "Bimetallism," Cambridge Books, Cambridge University Press, number 9780521028936, December.
    6. Rodney Edvinsson, 2012. "Early modern copper money: multiple currencies and trimetallism in Sweden 1624-1776," European Review of Economic History, Oxford University Press, vol. 16(4), pages 408-429, November.
    7. Flandreau, Marc, 2004. "The Glitter of Gold: France, Bimetallism, and the Emergence of the International Gold Standard, 1848-1873," OUP Catalogue, Oxford University Press, number 9780199257867.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Money; Copper; Mercantilism; Monopoly; Bimetallism; Sweden;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:exehis:v:49:y:2012:i:3:p:303-315. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/622830 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.