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Fiscal discriminations in three wars

  • Hall, George J.
  • Sargent, Thomas J.

In 1790, a U.S. paper dollar was widely held in disrepute (something shoddy was not ‘worth a Continental’). By 1879, a U.S. paper dollar had become ‘as good as gold’. These outcomes emerged from how the U.S. federal government financed three wars: the American Revolution, the War of 1812, and the Civil War. In the beginning, the U.S. government discriminated greatly in the returns it paid to different classes of creditors; but that pattern of discrimination diminished over time in ways that eventually rehabilitated the reputation of federal paper money as a store of value.

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Article provided by Elsevier in its journal Journal of Monetary Economics.

Volume (Year): 61 (2014)
Issue (Month): C ()
Pages: 148-166

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Handle: RePEc:eee:moneco:v:61:y:2014:i:c:p:148-166
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505566

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