Macro Musings with David Beckworth Will Roberds and Steve Quinn on the Original Central Bank: the Bank of Amsterdam
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Oct 27, 2025 Will Roberds, an economist emeritus at the Federal Reserve Bank of Atlanta, and Steve Quinn, a professor at Texas Christian University, dive into the fascinating history of the Bank of Amsterdam. They unveil the secrets of centuries-old ledgers, revealing how this early institution pioneered concepts like repo operations and active open market transactions. The discussion connects historical practices to today's central banking, exploring the impact of Amsterdam on global finance, stability, and wartime economics, while also highlighting lessons for contemporary monetary policy.
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Ledger-Based Proto Central Bank
- The Bank of Amsterdam functioned like a modern central bank with ledger-based money and standing repo operations centuries ago.
- Its ledgers resembled today's Fedwire and enabled central clearing of international metal flows.
Fiat Ledger Attracts Bullion
- In 1683 the bank adopted a fiat, account-based system that operated like a standing repo facility to attract bullion.
- This transformation made Amsterdam the global hub for metals trade by creating a new safe asset.
Fiat Emerged To Prevent Fraud
- Fiat ledger money emerged as a fraud-control solution: withdrawals required receipts proving deposited coins.
- That design deterred insider fraud and preserved ledger integrity, not ideological fiat motives.
