Politics on the Road to the U.S. Monetary Union

Peter L. Rousseau
2013 Social Science Research Network  
Is it possible to have a successful monetary union without a political one? It would seem that the early United States is a leading example from history of political union as a precondition for monetary stability. But this view is misleadingly simple. I review the historical record and reveal signs that the United States did not achieve a stable monetary union, if measured by a uniform currency and adequate safeguards against systemic risk, until well after the Civil War and probably not until
more » ... probably not until the founding of the Federal Reserve. Political change and shifting policy positions end up as key factors in shaping the monetary union that did ultimately emerge. JEL Codes: N11, N21, E42, E44
doi:10.2139/ssrn.2224336 fatcat:qda6qvlkojdkjod24byz3qybhy