Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67830
Authors: 
Smith, Gregor W.
Smith, R. Todd
Year of Publication: 
1996
Series/Report no.: 
Queen's Economics Department Working Paper 1255
Abstract: 
We propose 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. We test this perspective using daily data for the entire period, and measure the effect of news during and after the Civil War. 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.
Subjects: 
greenbacks
gold standard
regime switching
JEL: 
N21
Document Type: 
Working Paper

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