Gold Resumption and the Deflation of the 1870's
HANDBOOK OF MAJOR EVENTS IN ECONOMIC HISTORY, R. Whaples Jr., R. Parker, Eds., Forthcoming
18 Pages Posted: 29 Mar 2012
Date Written: July 1, 2011
The deflation experienced by the United States after the Civil War is notable not only for its long duration but also the controversy attached to the decision to resume specie payments only in gold, thereby abandoning the pre-war bimetallic system that had allowed for free coinage into both gold and silver.Much academic research supports the view that the deflation could indeed have been mitigated, or even avoided altogether, if the 1879 resumption had not been preceded by the so-called "Crime of 1873" that demonetized silver.
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