Negotiating value: Protested bills of exchange and currency dynamics in the 15th century between the Crown of Aragon and Pisa

This paper explores the all-important role of the bill of exchange in the late medieval international financial system, focusing on its influence on currency dynamics between the Crown of Aragon and Pisa. Drawing on nearly 600 protested bills of exchange from early 15th century Barcelona, it reconstructs the financial dealings of merchant-bankers to illuminate exchange-rate fluctuations in local currencies tied to the Pisan market. By analysing Scarsi’s records, the study investigates the causes of these variations and the predictability of such shifts. Through econometric analysis, the paper demonstrates that exchange-rate volatility was relatively modest, shaped largely by geographical and macroeconomic factors, offering new insights into the stability of medieval currency exchanges. This analysis enhances our understanding of financial mechanisms during the late medieval period, shedding light on the intricate financial architecture of the "Quattrocento".