Subject Index

Following tradition, the names of medieval jurists are alphabetized according to their first names.

abundance of coins, 167, 169

see also inflation

accident of 1873, 317

Accursius, 74, 76, 77, 94

amphibian, 95

Andrea d’Isernia, 81, 97, 98, 186n

Antonio de Butrio, 87

Aristotle, 75n, 97

Arrow-Debreu theory of value, 69

assignat, 248

Autun, 218

Azo, 74, 7678, 94

bi, 2236, 337372

back-solving, 350

bagatino, 178

Baldus, 80

Bartolo da Sassoferrato, 78, 83, 85, 86, 89, 95, 106, 108

Belgium, 315

Béthune, 217

billon, 46, 48, 114, 119, 138, 174, 190, 192, 197, 199, 204, 209, 211, 223, 231, 232n, 244, 247, 254

bimetallism, 229, 308313, 330

feasibility, 312

in a small country, 309

worldwide, 311

blanca, 233

Blondeau, Pierre, 56, 268

Bodin, Jean, 186

Bornitz, Jakob, 112

Boulton, Matthew, 61

brassage, see costs of producing coins

Briot, Nicolas, 60

Bristol, 217

Budé, Guillaume, 110

Budel, René, 111

Bulgarus, 77

bullion famine, 124125

doubtful, 228

Buridan, Jean, 97

Butigella, Girolamo, 108

Camden, Sir William, 17

canon law, 71

debasements in, 9091

seigniorage rate in, 91, 9596

sources and methods, 90

see also the Legal citations index

cash-in-advance constraint, 10, 12, 87, 339

Castile

coin denominations in medieval, 48 tab. 4.1

costs of producing coins in, 51 tab. 4.2

history of the price level, 35 fig. 2.3

inflation in, 244, 369

predicted, 117

long-run depreciation of small change, 16 fig. 2.1

monetary experiment in, 116, 230253, 324, 325

open market operation in, 32

pure copper coinage in, 228

Catalonia

inflation in, 255257

shortages of coins in, 222

token coinage in, 222224

Charlemagne, 4, 45

Cino da Pistoia, 85, 88

Ciompi revolt, 146

clipping, 274, 285, 346

clues provided by our model, 3739, 124128, 131, 145, 168, 187

coins, see gold, silver, subsidiary, copper

coins; small change

commodity money

conditions for, 21

inefficiency of, 101, 179, 230, 231

theories of, 76, 337

see also opportunity cost

communis opinio, 71, 78, 100, 103, 263, 272

convertibility, 4, 112, 265, 304

early experiment in, 222224

role in standard formula, 5

coordination problem

bimetallism, 312

in monetary union, 316

copper coins, 180, 209, 223, 227, 228, 254, 260, 264, 313

Corpus Juris Civilis, 73

costs of producing coins, 29, 5052, 344, 346

counterfeiting, 6467, 223, 323, 345

and token coinage, 30, 65, 113, 180, 218, 223, 247, 265, 267, 270

duplicating, 65

easier for underweight coins, 362n

government intolerance of, 65

government tolerance of, 31, 67, 271

imitating, 66

counters, 216

Cour des Monnaies, 204, 254

credibility, 272n, 290, 326

cry-down, 199, 233, 236, 239, 371

cry-up, 199

cuartillo, 233, 234

cuarto, 233, 241, 243, 244 fig. 14.5

currency board, 330, 366

analogy to convertible tokens, 330

currency competition, 257

cylinder press, 5861

diffusion of, 58

debasements

as cure for shortages, 11, 29, 39, 133, 135, 282, 321, 364

in canon law, 9091

in Florence, 144, 150

in France, 197

in Roman law, 77, 88

in Tuscany, 140

in Venice, 164, 168170

invasions as, 30

noninflationary, 364

spontaneous, see invasions of foreign coins to generate seigniorage revenues, 96, 139, 168n, 178, 228, 245, 261, 289

debt repayment

in Renaissance thinking, 103

Delft, 218

denominations

multiple, 21

demand for, modelled, 9, 338

in Roman law, 7980

range of, 48 tab. 4.1

depreciation

of small change

see also exchange rate movements

dollar, 310

dollarization, 330, 331

Doneau, Hugues, 104

double coincidence of wants, 103, 322

in Roman law, 9395

Paulus, 93

rediscovered in the Renaissance, 103

see also Dig. 18.1.1 in the Legal citations index

dozen, 46

Duaren, François, 110

ducat, 160, 165

Dumoulin, Charles, 102108

duplicating, see counterfeiting

écu (gold), 192, 194, 198, 206, 208, 209, 211, 214, 324

écu (silver), 310, 316, 318, 319

England

coin denominations in medieval, 48 tab. 4.1

costs of producing coins in, 51 tab. 4.2

history of the price level, 35 fig. 2.3

invasions of foreign coins in, 132134, 169

long-run depreciation of small change, 16 fig. 2.1

penny of, 131

shortages of coins in, 131135, 287n

equilibrium, 342

Erasmus, 217

escudo, 200, 209

exchange rate

indeterminacy, 10, 31, 37, 231, 233, 240, 335n, 349, 353, 367

movements, 322

in England, 292

in Florence, 140, 145, 148

in France, 199202

in Roman law, 81, 87

in Venice, 163, 166, 170

see also small change (depreciation of)

pegging, 3n, 367, 373

stability, 302, 313

export

of coins, 169, 204

of silver, 169, 206, 274, 275, 283

export of silver, 144, 150, 339

extrinsic quality, 84, 86

face value, see legal tender

Faenza, 219

fairs of Lyon, 207

feudal law

debasements in, 98

fiat money, 32, 173, 372

concept invented, 107

early examples, 111

theories of, 69

well-managed, 7

Fisher, Irving, 101

Flanders

coin denominations in medieval, 48 tab. 4.1

costs of producing coins in, 51 tab. 4.2

long-run depreciation of small change, 16 fig. 2.1

Florence

coin denominations in medieval, 48 tab. 4.1

debasements in, 144, 150

exchange rate movements in, 140, 145, 148

ghost monies in, 141, 146150

grosso of, 47, 48, 51, 52, 82, 128, 140145, 150, 154, 155

inflation in, 146

invasions of foreign coins in, 144, 150

legal tender laws in, 148150

long-run depreciation of small change, 16 fig. 2.1

shortages of coins in, 144, 150

florin, 52, 140, 141, 160, 258

sealed, 148

as unit of account, 149

football, 198

Forcadel, Étienne, 110

franc, 192, 195, 209, 211, 215

France

and the Latin Monetary Union, 315

coin denominations in medieval, 48 tab. 4.1

costs of producing coins in, 51 tab. 4.2

debasements in, 197

exchange rate movements in, 199202

ghost monies in, 211

history of the price level, 35 fig. 2.3

inflation in, 186, 193

invasions of foreign coins in, 135137

legal tender laws in, 205

long-run depreciation of small change, 16 fig. 2.1

monetary reform in 1577, 66, 187, 203, 208, 324

Price Revolution in, 186

shortages of coins in, 135137, 202204, 306n

Frederic II, German emperor, 219

free banking, 264

free minting, see minting

free token regime, 264, 266, 270, 292

termination of, 218, 264, 269, 303

French Revolution, 248

Friedman, Milton, 32, 188

full-bodied coins, 343, 346

Gabriel Biel, 96

γ, 2236, 337372

Genoa, 80, 128

Germany

gold standard in, 317

inflation in, 257259

monetary union in, 306308

shortages of coins in, 257

Gerona, 220, 222224

ghibellino, 155

ghost monies, 126128, 329

effects of legal restrictions on, 127, 147

in Florence, 141, 146150

in France, 211

in Venice, 164165, 168, 171

see also units of account

glossators, 74, 94

gluts of small change, 307

Godefroy, Denis, 104

gold coins

as commodity, 78

as unit of account, 3, 208, 298

introduced in Europe, 80

repaid in silver coins, 80

see also ducat; écu; escudo; florin; guinea

gold points, see silver points

gold standard, 4n, 21, 124, 211, 229, 261, 262, 287, 291, 298, 301, 327

accidental, 293

as barbarous relic, 36

evolution of, 293

in England, 293

in United States, 318

Locke as forbearer, 263, 290

gold/silver ratio, 166, 188, 193197, 296297, 312

endogenous, 310

golf, 198

González Téllez, Manuel, 112

Great Recoinage, 285287, 326

Gresham’s law, 31, 119

grosso

of Florence, 47, 48, 51, 52, 82, 128, 140145, 150, 154, 155

of Siena, 128, 140, 155

of Venice, 79, 82, 131, 160166, 168, 183, 184

guelfo, 141

Guillaume Durant, 89

guinea, 276, 293298

gulden, 307

hammer and pile, see minting technology (medieval)

Hostiensis, 91

Hotman, François, 104, 110

Hugolinus, 77, 94

imitating, see counterfeiting

inflation, 371

generated by shortages of coins, 360

in ancient Egypt, 12n

in Castile, 244

predicted, 117

in Catalonia, 255257

in Florence, 146

in France, 186, 193

in Germany, 257259

in Prussia, 258

in Russia, 260

in the Ottoman empire, 260

in Venetian territories, 177

in Venice, 173, 179

Ingenio of Segovia, 61, 117, 231, 232

Innocent IV, 91, 96

Inquisition, Spanish, 116

intervals, 8, 342

alignment of, 27

misalignment of, 28, 33, 38, 170

intrinsic content

in Roman law, 84

intrinsic quality, 84, 86

intrinsic value, 103

invasions of foreign coins, 31, 124, 125

and coin shortage, 125

as spontaneous debasements, 30

in England, 132134, 169

in Florence, 144, 150

in France, 135137

in Venice, 164, 178

Ireland

shortage of coins in, 31

Irnerius, 94

Italy, 315, 316

see also Florence; Lucca; Milan; Siena; Tuscany; Venice

Jacopo de Arena, 79, 87

Jacopo de Belvisio, 84

Jean Faure, 89, 103n

Kalman filter, 157

Keynes, John Maynard, 36

Kipper- und Wipperzeit, see inflation in Germany, 257

Lagrange multiplier, 10, 26n, 349

Law, John, 120

learning, 6, 12, 281, 327

by governments, 204, 240, 303

by markets, 331

Lefebvre, Valentin, 172

legal restrictions

evasions of, 127, 205, 295n

on export of metal, 132

on export of silver, 133, 163, 164

on melting, 133, 209

on minting, see minting on government account; free minting

laws, 31, 265, 293

Dumoulin’s views on, 106

in Florence, 148150

in France, 205

limited, 114, 115, 180, 209, 223, 269, 300

modelled, 368

values, 127

in Venice, 164, 166

power to set, 89, 106

Leyden, 221, 222

limping standard, 318319

Locke, John, 282285, 287290, 363

Low Countries

copper coins in, 228n

debt repayment laws, 104

siege money in, 221222

tokens in, 217, 218

see also Flanders

Lowndes, William, 281282, 363

Lucca

penny of, 77, 139

m

mi, 2236, 337372

Mâcon, 218

Malestroit, Jean Cherruyer de, 186

maravedi

copper, 233

silver, 233

Mariana, Juan de, 116118, 240, 244

Matteo d’Afflitto, 97, 98

Maubeuge, 218

melting

legal restrictions on, 133, 209

of small change, 359, 364

see also export

melting points, see minting points

Milan

coins of, 76, 178

costs of producing coins in, 51 tab. 4.2

Mill Mint, in Paris, 54, 209, 254

milled coins, 61, 270, 273

mint equivalent, 23, 340

mint price, 23, 340

in medieval Europe, 5253

mint, supply of coins by, 8

minting

on government account, 20, 164, 174, 209

unlimited or free, 20, 128, 303, 310, 340

minting points, 10, 343

minting technology

and counterfeiting, 65

medieval, 4853

modern, 6164, 271, 292, 303

Renaissance, 5361

see also screw press; cylinder press

model

need for, 7, 37

version with three coins, 189191

version with underweight coins, 279281, 302

with a small bimetallic country, 309310

monetary reform

in France, 1577, 66, 187, 203, 208, 324

monetary union

free riders in, 316

in Germany, 306308, 327

in Tuscany, 139, 140

Latin Monetary Union, 315317, 319

monitoring of, 307

Monneron fibrés, 63

μi, 25

Necker, Jacques, 272n

Netherlands

shortages of coins in, 137

Newton, Sir Isaac, 270, 282, 287288, 296298

no-arbitrage conditions, 343

nominal contracts, 328

nominal rigidities, 329

nominalism, 103106

obsidional currency, see siege money

obverse, 66

ochavo, 233

Odofredo de Denari, 84, 87

Oldrado da Ponte, 88

Olivier, Aubin, 54

open market operation, 28, 3334

contemplated in Castile, 245

opportunity cost of commodity money, 35

calculated by Friedman, 32, 188

deplored by Keynes, 36

noticed by Philip II of Spain, 231

Oresme, Nicole, 9799

Ottoman empire

inflation in, 260

overvalued coins, 116, 162, 173, 210, 257, 265, 344

see also token coinage

Panormitanus, 87

Paulus, 93

penny, 4546

of England, 131

of Florence, see picciolo

of Lucca, 77, 139

of Venice, see piccolo of Verona, 160

penny-in-advance constraint, 10, 27, 205, 339

φ, 19, 2236, 337372

φg, 189, 190, 310

φs, 187, 189, 190, 310

picciolo, 47, 52

piccolo, 170171, 181183

Pierre de Belleperche, 85

Pillius, 77, 84

Placentinus, 94

Pothier, Robert Joseph, 105

Poullain, Henri, 113, 118119

pound, 46

alternative meanings, 82

see also unit of account

price level

indeterminacy, 38

targeting, 329

Price Revolution

in France, 186, 323

price stability, goal of monetary policy, 115

Prussia, inflation in, 258

purchasing power parity

Poullain’s formulation, 119

quantity theory of money, 7, 11, 19, 115, 173, 238

equations for, 26

split in two, 335, 351, 360, 364

Quattrini affair, 142146

quattrino, 47, 52, 132, 141, 142, 150

rate of return dominance, 9

rational expectations, 327

real, 200, 201, 209, 233, 237n

reinforcements, 365

reverse, 67

Rogerius, 78

Roman law

debasements in, 77, 88

debt repayment in, 7071, 7481, 8390

double coincidence of wants in, 9395

exchange rate movements in, 81, 87

intrinsic content in, 84

multiple denominations in, 7980

seigniorage rate in, 95

sources and methods, 7374

unit of account in, 83

see also the Legal citations index

Russia, inflation in, 260

Saint-Omer, 219

Saxony, 106n, 259

Scaccia, Sigismondo, 112

screw press, 5358, 209

scrip, 203

seigniorage, 8, 52, 340, 344

morality of, 91, 97, 118

rate

how to set, 29, 95, 345

in canon law, 91, 9596

in Roman law, 95

philosophers’ views, 97

set to zero, 273

revenues

generated by debasements, 96, 139, 168n, 178, 228, 245, 261, 289

shaving, 346

shilling, see dozen

shortages of coins

cures for, 39

during sieges, 220

exchange rate fluctuations induced by, 27

in Catalonia, 222

in England, 131135, 287n

in Florence, 144, 150

in France, 135137, 202204, 306n

in Germany, 257

in Ireland, 31

in Spain, 137138

in the Netherlands, 137

in Venice, 163, 166, 169

modelled, 353359

see also abundance of coins

siege money, 111, 218222

justified by jurists, 98

precursor of standard formula, 216

Siena

grosso of, 128, 140, 155

σ, 23, 52, 71, 95

σi, 2236, 337372

silver coins

as unit of account, 23, 46

see also dollar; écu; franc; grosso; teston; real; thaler; subsidiary coins

silver points, 8, 21

and standard formula, 24

Slingsby, Sir Henry, xviii, 13, 120, 268

small change

depreciation, 9, 11, 15, 25, 349, 351, 357, 364

long-run, 16 fig. 2.1

issued

by government monopoly, 268

by unregulated private sector, 63, 271, 316

purchasing power of, 47

see also shortages of coins

Smith, Adam

his thought experiment, 101, 117n, 120, 227, 263, 330, 331n

soldino, 128, 166, 168

Spain

shortages of coins in, 137138

see also Castile; Catalonia

stamping of coins, 221, 223, 234236, 252

standard formula

and bimetallism, 309

defined, 5

early statement

by Say, 304

by Slingsby, 268

Germany, 307

implementation

complete, 303, 306

early, in Catalonia, 224

in the United States, 315

incomplete, 210, 230, 314

modelled, 366

trusting the government with, 36

see also convertibility; token coinage

steam engine, see minting technology (modern)

sticky prices, 329

subsidiary coins, 3, 224n, 254, 314, 315, 320

substitutes

small and large coins as, 25, 150, 179, 244n, 255, 338

surhaussement, see exchange rate movements in France

sweating, 346

Sweden, 249250

Switzerland, 315, 316, 319n

tale, valuation by, 1619, 22, 75, 322

see also weight, valuation by technology, see minting technology

Tendilla, Íñigo López de Mendoza, count of, 220

teston, 192, 215

thaler, 257, 258, 307, 308, 318

Thomas Aquinas, St, 97

token coinage, 3

medieval precursors, 216

supplied

by government, see standard formula (implementation); Castile

by private monopoly, 118, 254, 264266

by unregulated private sector, 217, 266

see also free token regime; siege money

tornesello, 174177

trust

in God, 69

in government, 98, 326

see also credibility

Tuscany

debasements in, 140

monetary union in, 139, 140

Uhlhorn, Dietrich, 63

underweight coins, 272276, 279281, 283285, 292, 299300, 302, 346348, 361363

problem for Locke, 283

unit of account, 3, 8283, 207, 292

and contracts, 328

and gold standard, 262

and legal tender laws, 88

change from silver to gold, 326

endogenous, 298

exogenous, 208

in monetary reform of 1577, 208

in Roman law, 83

maravedi, 233

Newton and silver, 298

sealed florin, 149

United States

history of the price level, 35 fig. 2.3

standard formula

implementation in, 315

Valencia, Gregorio, 110

vellón, 116, 138, 232

see also Castile (monetary experiment in)

Venice

debasements in, 164, 168170

exchange rate movements in, 163, 166, 170

ghost monies in, 164165, 168, 171

grosso of, 79, 82, 131, 160166, 168, 183, 184

inflation in, 173, 179

inflation in its territories, 177

invasions of foreign coins in, 164, 178

legal tender

values in, 166

legal tender values in, 164

long-run depreciation of small change, 16 fig. 2.1

shortages of coins in, 163, 166, 169

Verona

penny of, 160

Warin, Jean, 56

wear and tear, 168n, 191n, 253, 292, 299, 300n, 302, 346

weight, circulation by

of overweight coins, 134

of underweight coins, 285

weight, valuation by, 1619, 22

evident to John Locke, 283

preferred by Sir William Camden, 17

see also tale (valuation by)