| | EH.Net Encyclopedia: Money in the American Colonies |
 | | In colonial times, “money” and “currency” were practically synonymous and signified whatever was conventionally used as a medium of exchange. |
 | | Writing in 1786, and attempting to explain why the paper money in colonial times had retained its value, “Eugenio” attributed its success to the fact that it possessed what he called “the means of instant realization at value.” This awkward phrase signified it was instantly convertible, at par. |
 | | These fluctuations in the money supply are compatible with the quantity theory of money if periods when money was scarce were also periods when interest rates were high, as is also suggested by the historical record. |
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