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A history of prices in Canada, 1840–1871: a new wholesale price index

Author

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  • Donald G. Paterson
  • Ronald A. Shearer

Abstract

We present a new monthly wholesale price index for Canada, 1840–71, comparing fluctuations in the Canadian macroeconomy with fluctuations in similar U.S. and British indexes. Canadian prices move through distinct phases: the 1840s rise in prices and the decline in the depression of 1848–49; the mid‐century economic boom and the 1857 depression; U.S. Civil War inflation and apparent Canadian price insulation through a flexible exchange rate created by U.S. withdrawal from gold; and the non‐inflationary boom following Confederation. After adjustment for the U.S. greenback issue, a broad coherence of Canadian, U.S., and British indexes suggests highly integrated commodity markets. JEL Classification: N20, N21, E31 Une histoire des prix au Canada 1840–1871: un nouvel indice de prix de gros Ce mémoire présente un nouvel indice de prix de gros pour le Canada dans la période de 1840 à 1871. C’est un indice mensuel. A l’aide de cet indicateur, on décrit les fluctuations de la macroéconomie canadienne et on les compare avec les fluctuations d’indices similaires aux Etats‐Unis et en Grande Bretagne. Les prix canadiens passent à travers plusieurs phases au cours de cette période. Les prix s’accroissent dans les années 1840 et chutent avec la dépression de 1848/1849; et puis il y a le grand boom victorien du milieu du siècle qui culmine en 1857; il y a de plus les périodes de l’inflation de la guerre civile américaine et l’immunisation apparente des prix canadiens par la création d’un régime de change flexible parce que les Etats‐Unis se retirent de la monnaie étalonnée sur l’or; et enfin la période sans inflation du boom qui suit la Confédération. Si l’on ajuste pour tenir compte de l’affaire des « greenbacks », il y a cohérence des divers indices canadiens, américains et britanniques. Voilà qui suggère des marchés de biens fortement intégrés.

Suggested Citation

  • Donald G. Paterson & Ronald A. Shearer, 2003. "A history of prices in Canada, 1840–1871: a new wholesale price index," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 36(1), pages 224-253, March.
    • Handle: RePEc:wly:canjec:v:36:y:2003:i:1:p:224-253
    DOI: 10.1111/1540-5982.00011
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    References listed on IDEAS

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    1. Robert E. Ankli, 1971. "The Reciprocity Treaty of 1854," Canadian Journal of Economics, Canadian Economics Association, vol. 4(1), pages 1-20, February.
    2. Officer, Lawrence H. & Smith, Lawrence B., 1968. "The Canadian-American Reciprocity Treaty of 1855 to 1866," The Journal of Economic History, Cambridge University Press, vol. 28(4), pages 598-623, December.
    3. E. W. Cooney, 1960. "Long Waves In Building In The British Economy Of The Nineteenth Century," Economic History Review, Economic History Society, vol. 13(2), pages 257-269, December.
    4. Klovland Jan Tore, 1993. "Zooming in on Sauerbeck: Monthly Wholesale Prices in Britain 1845-1890," Explorations in Economic History, Elsevier, vol. 30(2), pages 195-228, April.
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    Cited by:

    1. Vincent J. Geloso, 2019. "Distinct within North America: living standards in French Canada, 1688–1775," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 13(2), pages 277-321, May.

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    More about this item

    JEL classification:

    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
    • N21 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: Pre-1913
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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