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About: Madisonian Economic Model     Goto   Sponge   NotDistinct   Permalink

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The Madisonian Economic Model was James Madison's plan for the repayment of domestic debts after the American Revolution.It was referred to by Madison as "discrimination" and was proposed in opposition to Hamilton's First Report on the Public Credit. "One of three things must be done; either pay both (the original holders and the speculators), reject wholly one or the other, or make a composition between them on some principle of equity." The Madisonian model favored this equity, but was rejected in favor of Hamilton's assumption plan.