how fiscal policy affects prices: britain’s first experience ......1044 how fiscal policy affects...

1044

How Fiscal Policy Affects Prices: Britain’s First Experience

with Paper MoneyPAMFILI M. ANTIPA

For almost 25 years between 1797 and 1821, the gold standard in Britain was

B

The Journal of Economic History

JOURNAL

Britain’s First Experience with Paper Money 1045

1

FIGURE 1

Sources

1

Antipa

London Times

2

agio, that is

4

2

Castaing’s Wettenhall’s Course of the Exchange

4


a paper pound at time t

5

agio,

London Times, the London Gazette

agio

agio

5

Antipa1048

de facto

in gold on the 27th


agio

agioEx-post

agio

Antipa1050

7

FIGURE 2AGIO

Notes Sources

7


FIGURE 3

NotesSources

Antipa1052

8

9

10

11

8

9

10

11

Britain’s First Experience with Paper Money

12

12

Antipa1054

14

15

FIGURE 4AGIO

Notes

Sources

14

15


17

18

19

London Times

17

18

19

Antipa

The Data

agio

agio to

agio

Castaing’s Wettenhall’s Course of the Exchange

agio, shown in Figure 1, was essentially 20

21

22

agio with the agio being

20 agio

21 agio

22


agio

between the agio

agioagio meant a

the agio

agioagio

TABLE 1

1,212 291Sources

Antipa1058

agio

ex post

Archival Evidence: The Press and the Bank

London Times,

London Gazette

Gazette Extraordinary

TABLE 2

Monthly indices

Yearly indices

Sources


London Gazette

London Times

Times and the Gazette

mentions in the London Times

24

ex-ante

24

Antipa

ex post

mand m+1

y x u ,t tx t j tβ δzt′ δδ +

t Tj Tj and j=1,..,m+1 ytxt(p zt(q and j are

utt T yt t t

and j agio

model (p=0

y z u.t tz jδ′ +

ut

series yt zt

ytyt


xt25

parameter, hk h T T

k k k k k k

Monthly Results for the Agio

agio are displayed in Figure 5 and agio’s

agio agio’s27

25 xt zt

27 agio’sthat the agio

agio’sagio’s

Antipa

January 1800

London Times on agio

April 1802

28

FIGURE 5AGIO

Notes

Sources

28

Britain’s First Experience with Paper M

oney

TABLE 3

Agio

April 1802

February 1811

27 72 27Sources

Antipa

London Gazette and the London Times agio29

November 1808the London Times th

the agio

February 1811

London TimesLondon Times

agio

July 1815

rd

dered to the Britishagio

May 1819

agio

Biweekly Results for the Agio

agio are presented in

agio

29

the agio London Gazette London Gazette

in the agio agio returned


8 February 1811

the agio

25 August 1812

agio to

17 June 1814

published in the London Gazette on the 2nd and 18th

FIGURE 6AGIO

Notes

Sources

London Times London Times

AntipaTABLE 4

Agio

8 February 1811

25 August 1812

94 95 78

28 52Sources


agio

17 March 1815

agio agio

23 June 1815 At this point, the agio

15 September 1815

agio

16 April 1816

agio

London Times London Gazette London Times

Antipa

28 November 1817

status quo

agio

28 May 1819

40

agio

Interest Rates on Public Debt

agio

40


agio’s

agio

41

14 November 1805th 42

14 June 1806London Times,

44

8 October 1806 45

41

42 London Gazette London Times London Times

44 London Times45 London Times

London Times

Antipa1070

29 January 1807

47 London Times also

48

12 November 1807

49

50

14 April 180851

FIGURE 7

Notes

Sources

47 London Times48 London Times, 49 London Times, London Gazette50 London Times, 51 HC Deb 11 April 1808 vol. 11, cc11-8; London Times 12 and 13 April 1808.

Britain’s First Experience with Paper M

oney1071

TABLE 5

14 April 1808

182 99

97

Sources

Antipa1072

agio,

in the agio 52

FIGURE 8

Notes

Sources

52

agio

HC Deb 2 June 1819 vol. 40, cc840-5)

.


the agio

the agio

agiot

agio

agio allowed ruling out

agio

during the suspension period rested on the pound, this also had a bearing

Antipa1074

Financial Reconstruction in England 1815–1822.

EconometricaJournal of

Applied Econometrics

Journal of Monetary Economics

Journal of Economic History

Explorations in Economic History

Journal of Economic History 51,

Revue Economique

The Sinews of Power.


Journal of Financial Economics

Explorations in Economic History

Oxford Economic Papers, New SeriesFragile by Design.


The Paper Pound of 1797–1821

The Journal of Economic History

Waterloo Lectures: A Study of the Campaign of 1815

The Bank of England.


Journal of Economic HistoryThe Financial Revolution in England

The Pound Sterling. A History of English Money

Development of British Monetary Orthodoxy 1797–1875

Journal of Monetary EconomicsEconomic History Review 14,

American Economic Review

The Growth and Fluctuation of the British Economy 1790–1850

The Terms of All the Loans Which Have Been Raised for the Public Service.

American Economic Review

Economic History Review

A Financial History of Western Europe.

Comparative Political Economy

Antipa

Growth and Fluctuations 1870–1913.

The Great Recoinage of 1696-9

The History of England

Money, History, and International Finance: Essays in Honor of Anna J. Schwartz,

History of the French Revolution, from 1789 to 1814

British Historical Statistics

The Rise of Financial Capitalism - International Capital Markets in the Age of Reason

Bulletin of Economic Research

Journal of Economic History Economic

History Review

The New Palgrave Dictionary of Economics

The New Palgrave Dictionary of Economics


EconometricaJournal of Economic

HistoryThe Principles of Political Economy

British Economy of the Nineteenth Century


Journal of Political EconomyThe Big Problem of Small Change.

The Review of Economics and Statistics

European Review of Economic History


Thoughts and Details on the High and Low Prices of the Last Thirty Years


European Review of Economic History

London GazetteLondon Times

how fiscal policy affects prices: britain’s first experience ......1044 how fiscal policy affects...

Documents