TY  - JOUR
AU  - Weidenmier,Marc D.
AU  - Burdekin,Richard C.K.
TI  - Suppressing Asset Price Inflation: The Confederate Experience, 1861-1865
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9230
PY  - 2002
Y2  - September 2002
UR  - http://www.nber.org/papers/w9230
L1  - http://www.nber.org/papers/w9230.pdf
N1  - Author contact info:
Marc D. Weidenmier
Robert Day School of Economics and Finance
Claremont McKenna College
500 East Ninth Street
Claremont, CA 91711
Tel: 909/607-8497
Fax: 909/621-8249
E-Mail: marc_weidenmier@claremontmckenna.edu
AB  - 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.
ER  -