of financial crises, showing that money is taken out of circulation when bank loans are paid back. This key insight is at … economy that cannot generate enough demand for its own goods and services. Financial crises result when bank lending slows … down or comes to a halt – while outstanding bank loans are still due for repayment. The mechanism is discussed in detail …

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 …