The Wild Card: Colonial Paper Money in French North America, 1685 to 1719

European Review of Economic History, Vol. 26 (2) 2022: 185-207

28 Pages Posted: 1 Jul 2017 Last revised: 25 Sep 2022

See all articles by Bryan Cutsinger

Bryan Cutsinger

Florida Atlantic University; American Institute for Economic Research

Vincent Geloso

George Mason University - Department of Economics

Mathieu Bédard

Montreal Economic Institute; Aix-Marseille University - Aix-Marseille School of Economics

Date Written: July 31, 2020

Abstract

During the colonial era, the French colonial government in Canada experimented with paper money printed on the back of playing cards. The first experiment lasted from 1685 to 1719. In the first years, there was little inflation in spite of a rapidly expanding stock of playing card money. It is only in the later years of the experiment that prices rose. The behavior of the money stock and nominal output suggest that velocity fluctuated throughout the period. We argue here that these fluctuations can be explained by variations in the enforcement of legal tender laws. This interpretation provides insights into the debate over the inflationary impact of paper money in the colonial United States.

Keywords: redemption theory, Canadian economic history, money supply, monetary economics

JEL Classification: N11, N21, E42

Suggested Citation

Cutsinger, Bryan and Geloso, Vincent and Bédard, Mathieu, The Wild Card: Colonial Paper Money in French North America, 1685 to 1719 (July 31, 2020). European Review of Economic History, Vol. 26 (2) 2022: 185-207, Available at SSRN: https://ssrn.com/abstract=2995560 or http://dx.doi.org/10.2139/ssrn.2995560

Bryan Cutsinger

Florida Atlantic University ( email )

Boca Raton, FL 33431
United States

American Institute for Economic Research ( email )

PO Box 1000
Great Barrington, MA 01230
United States

Vincent Geloso (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

Mathieu Bédard

Montreal Economic Institute ( email )

910, rue Peel, bureau 600
Montreal, Quebec J7R 6Y9
Canada
514 273-0969 (Phone)
514 273-2581 (Fax)

HOME PAGE: http://www.iedm.org/

Aix-Marseille University - Aix-Marseille School of Economics ( email )

2 rue de la Charité
Marseille, 13236
France

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