Discussion paper

DP15348 Money, Banking, and Old-School Historical Economics

We review developments in the history of money, banking, and financial intermediation
over the last twenty years. We focus on studies of financial development, including
the role of regulation and the history of central banking. We also review the literature
of banking and financial crises. This area has been largely unaffected by the so-called
new econometric methods that seek to prove causality in reduced form settings. We
discuss why historical macroeconomics is less amenable to such methods, discuss the
underlying concepts of causality, and emphasize that models remain the backbone of
our historical narratives.


Monnet, E and F Velde (2020), ‘DP15348 Money, Banking, and Old-School Historical Economics‘, CEPR Discussion Paper No. 15348. CEPR Press, Paris & London. https://cepr.org/publications/dp15348