Work

Greenback-Gold Returns and Expectations of Resumption, 1862–1879

Year: 1997

Type: article

Abstract: This article proposes a unified framework for studying the greenback-gold price during the U.S. suspension of convertibility from 1862 to 1879.The gold price is viewed as a floating exchange rate, with a fixed destination given by gold standard parity because of the prospect of resumption. This perspective is tested using daily data for the entire period, and the effect of news during and after the Civil War is measured. New evidence of a decline in the volatility of gold returns after the Resumption Act of 1875 provides statistical support for the importance of expectations of resumption.

Source: The Journal of Economic History

DOI: 10.1017/s0022050700019100

Authors: Gregor W. Smith, R. Todd Smith

Institutions: Queen's University, International Monetary Fund, University of Alberta

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2073484529

FWCI: 7.782

Cites: 39

Cited by: 38

Related to: 10