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Private money creation and the Suffolk Banking System

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  • Bruce Smith
  • Warren E. Weber

Abstract

Recent legislation has removed U.S. legal impediments to issuing private bank notes. At the same time, improved transaction technologies have enabled banks and other entities to issue various forms of \"e-cash.\" Consequently, developed economies may soon see the reemergence of privately issued substitutes for currency. The authors examine the potential economic consequences using the Bank of Suffolk as a model.
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Suggested Citation

  • Bruce Smith & Warren E. Weber, 1999. "Private money creation and the Suffolk Banking System," Proceedings, Federal Reserve Bank of Cleveland, pages 624-667.
    • Handle: RePEc:fip:fedcpr:y:1999:p:624-667
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