Calomiris, Charles W.; Mason, Joseph R. - National Bureau of Economic Research (NBER) - 2004
The puzzle of underissuance of national bank notes disappears when one disaggregates data, takes account of regulatory … limits, and considers differences in opportunity costs. Banks with poor lending opportunities maximized their issuance. Other …. National banks did not enter primarily to issue national bank notes, and a "pure arbitrage" strategy of chartering a national …