Product Review

This history focuses on the credit generating function of American banks. It demonstrates that banks aggressively promoted economic development rather than passively following its course. Using previously unexploited data, Professor Bodenhorn shows that banks helped to advance the development of industrialization. Additionally, he shows that banks formed long-distance relationships that promoted geographic capital mobility, thereby assuring that short-term capital was directed in socially desirable directions. He then traces those institutional and legal developments that allowed for this capital mobility.