Bills of Exchange and the Money Market to 1600

Abstract

This paper describes the evolution of the bill of exchange in medieval and early modern Europe both as a means of remittance and as an instrument of credit. It examines the evolution of the instrument, its use in remittance, its effect on international bullion flows, and its use as an instrument of credit. The paper also describes the international network of exchange markets on which the use of the bill of exchange relied. The paper concludes with a discussion of the emergence of negotiability in Antwerp in response to problems in the system of settlement. An Appendix describes the determination of exchange rates in this period.

JEL Classification: F3, G15, N23