Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/191658
Authors: 
Herger, Nils
Year of Publication: 
2017
Series/Report no.: 
Working Paper 17.01
Abstract: 
In the eighteenth century, a fierce political debate broke out in Sweden about the causes of an extraordinary depreciation of its currency. More specifically, the deteriorating value of the Swedish daler was discretionarily blamed on monetary causes, e.g. the overissuing of banknotes, or nonmonetary causes, such as balance of payments deficits. This paper provides a comprehensive empirical assessment of this so-called "Swedish Bullionist Controversy". The results of vector autoregressions suggest that increasing amounts of paper money did give rise to inflation and a depreciation of the exchange rate. Conversely, nonmonetary factors were probably less important for these developments.
Subjects: 
bullionism
floating exchange rate
inconvertible banknotes
paper currency
Sweden
JEL: 
B12
B17
E42
F31
N13
Document Type: 
Working Paper
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