Thursday, November 10, 2011

Revolutionary War; Financial system?

By the end of the revolutionary war, the united states faced a financial system that had collapsed. According to economic historians Gary Walton and Hugh Rockoff, after the Constitution was ratified, there was little agreement concerning how best to "achieve the ultimate goals of monetary unit of stable purchasing power and a banking system that was sound yet liberal in supplying credit." What economic problems did the designers of the early national U.S. banking and money systems intend to solve? How did they go about trying to solve these problems? Were they successful? In addressing this question, you need only address the period up through the Second Bank War.

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