Ales, Laurence; Carapella, Francesca; Maziero, Pricila; … - In: Journal of Economic Theory 142 (2008) 1, pp. 5-27
Prior to 1863, state-chartered banks in the United States issued notes--dollar-denominated promises to pay specie to the bearer on demand. Although these notes circulated at par locally, they usually were quoted at a discount outside the local area. These discounts varied by both the location of...