Economy of the Confederate States of America of London provided the U.K. Parliament with a powerful economic justification for the policy of neutrality. At the beginning of the war the Confederacy had some $47 million in bank deposits (compared to $189 million in Northern banks), and $27 million in specie (gold and silver coins) holdings (compared to $45 million worth in the northern states). Bad money drives out good, and supplies of gold and silver were hoarded, driven out of circulation by the rising flood of paper money. The first Confederate notes were issued in March 1861, and bore interest. They were soon followed by others, bearing
Say's law real shocks cause recessions and that the market responds efficiently to these real economic shocks. Paul Krugman dismisses Say's law as, "at best, a useless tautology when individuals have the option of accumulating money rather than purchasing real goods and services". It is not easy to say what exactly Say's law says about the role of money apart from the claim that recession is not caused by lack of money. The phrase "products are paid for with products" is taken to mean that Say has a barter model of money; contrast with circuitist and post-Keynesian monetary theory. One can read