Quebec’s Card Money

           Though invented in China a millennia ago, paper money was viewed with suspicion for centuries thereafter. With its issuance potentially unlimited, how could its value be maintained? The question was grappled with in colonial Quebec, which resorted to using paper money made from ordinary playing cards in order to make up for a chronic shortage

Commercial Paper Crisis of 1763

           For as long as money can be borrowed short-term at a rate cheaper than it can be borrowed for longer, banks and borrowers will be incentivized to keep the duration of their liabilities short. While this is economically favorable in the short-run, it carries meaningful risks. Such a maturity mismatch has been the source of

England’s 15th Century Depression

           In the mid-15th century, the economy of late-medieval England took a turn for the worse. The result was decades of economic stagnation and a reversal of a paradigm that dated to the end of the Great Plague of the 1340s. To speak of economic recessions or depressions in a pre-modern period, especially those whose root

The Soviet Union’s Global Bank

           Despite the confrontation between the West and East during the Cold War, there was plenty of peaceful economic interaction between the two sides. During the roughly 75-year existence of the Soviet Union, it interacted across numerous different fronts with the capitalist world. One of the most notable of these channels was trade. Many banks financed

WWI’s Emergency Money

           Back when the value of currencies was still linked to the precious metals, and their issuance therefore curtailed, many resented the scarcity of money as the cause of their economic ills. Of course, a deficiency of money makes credit similarly scarce and can slow economic growth even when any stimulus at all would be welcomed.