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The Distribution of Congressional Spending During the American Revolution, 1775-1780: The Problem of Geographic Balance

  • Farley Grubb

    ()

    (Department of Economics,University of Delaware)

Resources to fight the War for Independence from Great Britain (1775-1783) were to be provided to the U.S. Congress by the individual states based on each state’s population share in the united colonies. Congressional spending, however, largely flowed to where the theater of war was located. Thus a geographic imbalance in revenue and spending arose. Because much of the spending was through issuing paper money, geographic variation in inflation as well as in general economic activity resulted. This in turn affected the relative strength of each state’s attachment to the union with ramifications on maintaining political unity.

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File URL: http://www.nber.org/papers/w14267
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Paper provided by University of Delaware, Department of Economics in its series Working Papers with number 08-21.

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Length: 38 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:dlw:wpaper:08-21.
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Web page: http://www.lerner.udel.edu/departments/economics/department-economics/

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  1. Grubb, Farley, 2008. "The Continental Dollar: How Much Was Really Issued?," The Journal of Economic History, Cambridge University Press, vol. 68(01), pages 283-291, March.
  2. Farley Grubb, 2008. "The Continental Dollar: What Happened to It after 1779?," NBER Working Papers 13770, National Bureau of Economic Research, Inc.
  3. Peter L. Rousseau, 2004. "A Common Currency: Early U.S. Monetary Policy and the Transition to the Dollar," NBER Working Papers 10702, National Bureau of Economic Research, Inc.
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