Suppressing Asset Price Inflation: The Confederate Experience, 1861-1865

Marc Weidenmier () and Richard Burdekin

No 9230, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Confederate monetary reforms encouraged holders of Treasury notes to exchange these notes for bonds by imposing deadlines on their convertibility. We show that Confederate funding acts aimed at precipitating the conversion of currency into bonds did temporarily suppress currency depreciation. These acts also triggered upsurges in commodity prices, however, as note holders rushed to spend the currency before their exchange rights were reduced. Asset price stabilization policies seem to have increased the velocity of circulation and counterproductively channeled inflationary pressures into other areas of the economy.

JEL-codes: E52 N21 (search for similar items in EconPapers)
Date: 2002-09
Note: DAE
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Citations: View citations in EconPapers (5)

Published as Richard C. K. Burdekin & Marc D. Weidenmier, 2003. "Suppressing Asset Price Inflation: The Confederate Experience, 1861--1865," Economic Inquiry, Oxford University Press, vol. 41(3), pages 420-432, July.

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