@techreport{NBERw8583,
 title = "Aggregate Price Shocks and Financial Stability: The United Kingdom 1796-1999",
 author = "Michael D. Bordo and Michael J. Dueker and David C. Wheelock",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "8583",
 year = "2001",
 month = "November",
 URL = "http://www.nber.org/papers/w8583",
 abstract = {This paper investigates the impact historically of aggregate price shocks on financial stability in the United Kingdom.  We construct an annual index of U.K. financial conditions for 1790-1999 and use a dynamic probit model to estimate the effect of aggregate price shocks on the index.  We find that price level shocks contributed significantly to financial instability during 1820-1931, and that inflation rate shocks contributed to instability during 1972-99.  Both the nature of aggregate price shocks and their impact depend on the existing monetary and financial regime, but price shocks historically have been a source of financial instability.},
}