CGEH Working Paper Series Coins as gauge for growth VOC- doits to probe Java’s deep monetisation, 1700–1800 Alberto Feenstra, University of Amsterdam November 2013 Working paper no. 49 www.cgeh.nl/working-paper-series/ Coins as gauge for growth VOC- doits to probe Java’s deep monetisation, 1700-1800 Alberto Feenstra, University of Amsterdam Abstract: During the eighteenth century the VOC imported over a billion small copper coins (doits) to Java, which is a remarkable operation for the world’s largest enterprise at that time, since these coins were unfit to pay for the company’s wholesale trade. This paper argues that the VOC responded to Java’s specific need for small coins, because people increasingly relied on the market for daily necessities and became less dependent on subsistence farming. The alternative explanations of population growth, substitution and inflation do not satisfactorily explain the increased demand for these copper doits. Therefore, this paper proposes that Java’s economy underwent a transformation, particularly after 1750. Keywords: Economic History, Money Supply, Economic growth, Indonesia: Java. JEL Codes: E410, E51, N150. Corresponding author: Alberto Feenstra,
[email protected]. Acknowledgements: The author would like to thank Ulbe Bosma, Jan Lucassen, Joost Jonker, Pim de Zwart, Samuel Kruizinga and Lodewijk Petram for their comments on earlier versions of this paper. This paper is to be published in a special issue on coins, currencies and credit in social and economic history of Tijdschrift voor Sociale en Economische Geschiedenis/ The Low Countries Journal of Social and Economic History. UvA Coins as gauge for growth– VOC-doits on Java Alberto Feenstra 1.