NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Suppressing Asset Price Inflation: The Confederate Experience, 1861-1865

Marc D. Weidenmier, Richard C.K. Burdekin

NBER Working Paper No. 9230
Issued in September 2002
NBER Program(s):   DAE

Confederate monetary reforms encouraged holders of Treasury notes to exchange these notes for bonds by imposing deadlines on their convertibility. We show that Confederate funding acts aimed at precipitating the conversion of currency into bonds did temporarily suppress currency depreciation. These acts also triggered upsurges in commodity prices, however, as note holders rushed to spend the currency before their exchange rights were reduced. Asset price stabilization policies seem to have increased the velocity of circulation and counterproductively channeled inflationary pressures into other areas of the economy.

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Document Object Identifier (DOI): 10.3386/w9230

Published: Richard C. K. Burdekin & Marc D. Weidenmier, 2003. "Suppressing Asset Price Inflation: The Confederate Experience, 1861--1865," Economic Inquiry, Oxford University Press, vol. 41(3), pages 420-432, July. citation courtesy of

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