In 1683 the Bank of Amsterdam introduced a form of fiat money that successfully competed with the coinage of the time … Dutch Republic. The Bank's fiat money regime persisted until the downfall of the Dutch Republic in 1795 and incorporated … modern features such as gross settlement of financial obligations, open market operations, central bank repurchase agreements …

In 1683 the Bank of Amsterdam introduced a form of fiat money that successfully competed with the coinage of the time … Dutch Republic. The Bank's fiat money regime persisted until the downfall of the Dutch Republic in 1795 and incorporated … modern features such as gross settlement of financial obligations, open market operations, central bank repurchase agreements …

money. However, there are limits. How negative can central bank equity be before fiat money loses credibility? We address … this question using a global games approach motivated by the fall of the Bank of Amsterdam (1609–1820). We solve for the … fiscal support and central bank capital in sustaining trust in fiat money …