Greenback-Gold Returns and Expectations of Resumption, 1862-1879
AbstractWe propose a unified framework for studying the greenback-gold price during the U.S. suspension of convertibility from 1862 to 1879. The gold price is viewed as a floating exchange rate, with a fixed destination given by gold standard parity because of the prospect of resumption. We test this perspective using daily data for the entire period, and measure the effect of news during and after the Civil War. New evidence of a decline in the volatility of gold returns after the Resumption Act of 1875 provides statistical support for the importance of expectations of resumption.
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Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 1255.
Length: 28 pages
Date of creation: Dec 1996
Date of revision:
Publication status: forthcoming in the Journal of Economic History
greenbacks; gold standard; regime switching;
Other versions of this item:
- Smith, Gregor W. & Smith, R. Todd, 1997. "Greenback-Gold Returns and Expectations of Resumption, 1862–1879," The Journal of Economic History, Cambridge University Press, vol. 57(03), pages 697-717, September.
- N21 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: Pre-1913
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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