Canadian Banking System, Counterfeiting, Currency Competition, National Banking Era, Private Banknotes

I've referred often in these pages to the virtues of Canada's late-19th century currency system, with its heavy reliance upon circulating notes issued by several dozen commercial banks, most of which commanded extensive nationwide branch networks. I've also lamented the fact that so few monetary economists today, let…

Better Than Cash Alliance, digital payments, international development, network effects, war on cash

In a classic account of why prohibitions and other economic restrictions harmful to consumers arise and persist, economist Bruce Yandle noted that such restrictions are often promoted by a coalition between two groups. The first group are morally motivated do-gooders (“Baptists”) who think that the restrictions will…