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Fiscal Sustainability and the Value of Money: Lessons from the British Paper Pound, 1797-1821

Listed author(s):
  • Antipa, P.

This article explores the determinants of price level fluctuations in Britain during the first suspension of the gold standard over the 1797-1821 period. I find that the contemporary price level was determined by world gold prices and expectations regarding the resumption of the gold standard at the pre-war parity. As the latter hinged on market participants’ expectations concerning the financial burden of the Napoleonic Wars, my contribution establishes the importance of fiscal factors for the determination of the price level.

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File URL: https://publications.banque-france.fr/sites/default/files/medias/documents/working-paper_466_2013.pdf
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Paper provided by Banque de France in its series Working papers with number 466.

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Length: 35 pages
Date of creation: 2013
Handle: RePEc:bfr:banfra:466
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Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS

Web page: http://www.banque-france.fr/

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