Private Credit Money Gone Public: Monetary Transformation and the Accommodation of Bank Notes, Bank Deposits and Shadow Money

In his thesis, Steffen examines this process of 'accommodating' private credit money from a comparative perspective. To understand how and why such accommodation occurred, it develops a theory of private credit money accommodation and applies it on three cases in the respective centres of the global financial system: the 1797 Bank Restriction in the United Kingdom that accommodated bank notes; the 1933 Emergency Banking Act in the U.S. that accommodated bank deposits; as well as the realignment of Federal Reserve policies after the 2008 financial crisis, which led to an accommodation of money market mutual fund shares and overnight repurchase agreements as contemporary forms of ‘shadow money’.