Easy Money: American Puritans and the Invention of Modern Currency (Markets and Governments in Economic History)

**A sweeping history of the American invention of modern money.** Economists endlessly debate the nature of legal tender monetary systems—coins and bills issued by a government or other authority. Yet the origins of these currencies have received little attention. Dror Goldberg tells the story of modern money in North America through the Massachusetts colony during the seventeenth century. As the young settlement transitioned to self-governance and its economy grew, the need to formalize a smooth exchange emerged. Printing local money followed. __Easy Money__ illustrates how colonists invented contemporary currency by shifting its foundation from intrinsically valuable goods—such as silver—to the taxation of the state. Goldberg traces how this structure grew into a worldwide system in which, monetarily, we are all Massachusetts. Weaving economics, law, and American history, __Easy Money__ is a new touchstone in the story of monetary systems. "A sweeping new history of the American origins of modern money. Economists debate endlessly the nature of fiat monetary systems-coins and bills whose value is guaranteed by a government or other authority. But the actual origins of these fiat currencies have received little attention. With Easy Money, economic historian Dror Goldberg tells the origin story for fiat currency in North America (and maybe beyond): the little-known example of the Massachusetts colony at the end of the 17th century. As the young colony grew into passive self-governance, and as its economy became increasingly complex, the need to formalize a smooth exchange emerged. Printing local money followed. Goldberg's story illustrates how colonial Americans invented modern money by shifting money's foundation from intrinsically valuable goods to the authority of the state. Whereas other governments had tied currencies unit to gold (and would continue to do so until the Great Depression and beyond), Massachusetts tied its local money to the assurance of a government: This money came from the state treasury, and it's the only currency you can use to pay for x things, so use this money. Goldberg's narrative traces how this happy accident has grown into a worldwide monetary system in which, monetarily, we are all Massachusetts. As Goldberg illustrates, the road to fiat currency has not been linear. Weaving monetary economics and American history, Easy Money is a new, highly novel starting square for the modern history of monetary systems"-- Provided by publisher Contents Preface Part I Introductions Chapter One Introduction to the Book Chapter Two Money and Its Inventions: Theoretical Considerations Chapter Three En gland in the Late Sixteenth Century Chapter Four English Developments, 1584– 1692 Part II The Atlantic Chapter Five Before 1630: Harvesters of Money Chapter Six The Puritan Exodus, 1629– 1640: General Features Chapter Seven Massachusetts Takes the Monetary Lead, 1630– 1640 Chapter Eight A New Hope, 1640– 1660 Chapter Nine The Empire Strikes Back, 1660– 1686 Chapter Ten Governments and Paper Money Projects, 1685– 1689 Chapter Eleven The Massachusetts Legislator: The Case of Elisha Hutchinson Chapter Twelve The Return of the General Court, 1689– 1690 Summary of Part II Part III A Monetary Revolution Chapter Thirteen The Legal Tender Law, 1690 Chapter Fourteen Aftermath, 1691– 1692 Chapter Fifteen Back to En gland’s Financial Revolution, 1692– 1700 Chapter Sixteen Analysis Chapter Seventeen Conclusion Notes References Index