Title of article
The paradoxofinterestratesoftheGreenbackEra:Areexamination
Author/Authors
Oleksandr Zhylyevskyy، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2010
Pages
12
From page
1026
To page
1037
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
Serial Year
2010
Journal title
Journal of Monetary Economics
Record number
846446
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