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Published online by Cambridge University Press:  16 November 2023

Stephen Quinn
Affiliation:
Texas Christian University
William Roberds
Affiliation:
Federal Reserve Bank of Atlanta
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Summary

This introductory chapter describes salient features of the Bank of Amsterdam and proposes that these were sufficiently advanced to qualify the Bank as a modern central bank. Sophisticated central banking, however, was not the Bank’s original mission, which instead was to apply contemporaneous information technology (double-entry accounting) within a limited-purpose institution to facilitate the movement of safe assets (trade coins) through Amsterdam. By the eighteenth century, the Bank had moved well beyond its original design and evolved into a de facto fusion of two banks, active and passive, linked by a common liability — fiat ledger money. This chapter outlines this evolution, which is explored in greater detail in subsequent chapters.

Type
Chapter
Information
How a Ledger Became a Central Bank
A Monetary History of the Bank of Amsterdam
, pp. 1 - 16
Publisher: Cambridge University Press
Print publication year: 2023

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