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An empirical assessment of the Swedish Bullionist Controversy




In the eighteenth century, a fierce political debate broke out in Sweden about the causes of an extraordinary depreciation of its currency. More specifically, the dete- riorating value of the Swedish daler was discretionarily blamed on monetary causes, e.g. the overissuing of banknotes, or nonmonetary causes, such as balance of payments deficits. This paper provides a comprehensive empirical assessment of this so-called "Swedish Bullionist Controversy". The results of vector autoregressions suggest that increasing amounts of paper money did give rise to in ation and a depreciation of the exchange rate. Conversely, nonmonetary factors were probably less important for these developments.

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  • Nils Herger, 2017. "An empirical assessment of the Swedish Bullionist Controversy," Working Papers 17.01, Swiss National Bank, Study Center Gerzensee.
  • Handle: RePEc:szg:worpap:1701

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    References listed on IDEAS

    1. Robert V. Eagly, 1963. "Money, Employment and Prices: A Swedish View, 1761," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 77(4), pages 626-636.
    2. Peter Bernholz, 2003. "Monetary Regimes and Inflation," Books, Edward Elgar Publishing, number 2873.
    3. Nachane, D M & Hatekar, N R, 1995. "The Bullionist Controversy: An Empirical Reappraisal," The Manchester School of Economic & Social Studies, University of Manchester, vol. 63(4), pages 412-425, December.
    4. Joshua R. Hendrickson, 2018. "The Bullionist Controversy: Theory and New Evidence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 50(1), pages 203-241, February.
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    7. Officer, Lawrence H, 2000. "The Bullionist Controversy: A Time-Series Analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 5(3), pages 197-209, July.
    8. Myhrman, Johan, 1976. " Experiences of Flexible Exchange Rates in Earlier Periods: Theories, Evidence and a New View," Scandinavian Journal of Economics, Wiley Blackwell, vol. 78(2), pages 169-196.
    9. Edvinsson, Rodney, 2009. "The multiple currencies of Sweden-Finland 1534-1803," Stockholm Papers in Economic History 7, Stockholm University, Department of Economic History.
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