Title of article :
The paradoxofinterestratesoftheGreenbackEra:Areexamination
Author/Authors :
Oleksandr Zhylyevskyy، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2010
Abstract :
The twoleadingexplanationsforthecounterintuitivebehaviorofinterestratesduring
the GreenbackEra(1862–1878)–theresumptionexpectationsmodelof Calomiris(1988)
andthecapitalflowargumentof FriedmanandSchwartz(1963) – areinconsistentwith
eachotherintermsoftheirtreatmentoffinancialarbitrage.Amethodologytoidentify
unexploitedarbitrageopportunitiesinfinancialdataisproposed.Observablereturns
stronglysuggestthatthemoneymarketoftheGreenbackEradidnotsystematically
admitarbitrage,exceptpossiblyaroundthetimesoftheGoldCornerof1869andthe
Panicof1873,whichimpliesthatCalomirisprovidesamoreplausibleexplanation
Journal title :
Journal of Monetary Economics
Journal title :
Journal of Monetary Economics
