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      How Fiscal Policy Affects Prices: Britain's First Experience with Paper Money

      The Journal of Economic History
      Cambridge University Press (CUP)

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          Abstract

          For almost 25 years between 1797 and 1821, the gold standard in Britain was suspended in order to finance the Napoleonic Wars, creating a paper pound or a fiat currency. Suspension was accompanied by substantial inflation and the accumulation of public debt. By identifying shifts in the spot exchange rate of paper pounds for gold, I document how contemporaries' expectations of how debt would be stabilized in the future shaped the pound's internal value. Thus, it is argued that during the “paper pound” period, fiscal prospects provided a third mechanism, beyond monetary and real factors, affecting the price level.

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          The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis

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            Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth-Century England

            The article studies the evolution of the constitutional arrangements in seventeenth-century England following the Glorious Revolution of 1688. It focuses on the relationship between institutions and the behavior of the government and interprets the institutional changes on the basis of the goals of the winners—secure property rights, protection of their wealth, and the elimination of confiscatory government. We argue that the new institutions allowed the government to commit credibly to upholding property rights. Their success was remarkable, as the evidence from capital markets shows.
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              Computation and analysis of multiple structural change models

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                Author and article information

                Journal
                The Journal of Economic History
                J. Econ. Hist.
                Cambridge University Press (CUP)
                0022-0507
                1471-6372
                December 2016
                November 17 2016
                December 2016
                : 76
                : 4
                : 1044-1077
                Article
                10.1017/S0022050716000978
                f25c2b1d-cc2f-40d5-aac6-767ca9351db1
                © 2016

                https://www.cambridge.org/core/terms

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