A neglected contribution to monetary theory in the eighteenth century: Anders Wappengren on paper money, floating exchange rates, and purchasing power parity

Research output: Contribution to journalArticle


Between 1789 and 1803 the National Debt Office issued unbacked interest bearing notes whereas the Bank of Sweden issued silver backed notes. The massive note issuance by the National Debt Office led to different exchange rates and two units of account. The situation gave rise to an early paper standard theory formulated by Anders Wappengren, a well-read merchant who was strongly influenced by Adam Smith and the French physiocrats. Wappengren had a firm understanding of monetary systems and the adjustment mechanism under floating exchange rates, including such concepts as purchasing power parity and price stickiness.


Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Economic History


  • Adjustment mechanism, exchange rates, metallic money, paper money, purchasing power parity
Original languageEnglish
Pages (from-to)870-896
Number of pages27
JournalEuropean Journal of the History of Economic Thought
Issue number6
Publication statusPublished - 2016 Nov 1
Publication categoryResearch