Hugh Rockoff on Optimal Currency Areas, “Yellowbacks,” and Free Banking
Macro Musings with David Beckworth
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What Is the Difference Between the First Bank and the Second Bank?
The first and second banks had branches throughout the country, so it was easier to use their notes. It would have to go to a note broker who would exchange them for local money for you. And that's probably one reason they were really hated too, right? You think if your bank is only allowed one branch and your notes can only go so far before they start getting discounted.
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