IDEAS home Printed from https://ideas.repec.org/a/bla/scotjp/v43y1996i4p444-67.html
   My bibliography  Save this article

Inflation and Switches between Specie and Paper Standards in Sweden 1668-1931: A Public Finance Interpretation

Author

Listed:
  • Fregert, Klas
  • Jonung, Lars

Abstract

In this study, the recent literature on the integration of fiscal and monetary policy is used to examine the suspensions and resumptions of currency convertibility in Sweden during the period 1668-1931. We demonstrate that urgent demands for financing of war expenditures forced the Swedish Riksbank to abandon convertibility of its notes in all cases of suspensions prior to 1914. We argue that the suspension periods should be regarded as unexpected lapses into discretion from rule-bound convertibility regimes rather than as part of an optimal ex ante public finance policy. All resumptions of convertibility, except for the resumption of 1924, implied an ex post formal devaluation. All suspensions were illegal, except in 1931 when a constitutional escape clause was invoked. Copyright 1996 by Scottish Economic Society.

Suggested Citation

  • Fregert, Klas & Jonung, Lars, 1996. "Inflation and Switches between Specie and Paper Standards in Sweden 1668-1931: A Public Finance Interpretation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(4), pages 444-467, September.
    • Handle: RePEc:bla:scotjp:v:43:y:1996:i:4:p:444-67
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hendrickson, Joshua R., 2020. "The Riksbank, emergency finance, policy experimentation, and Sweden’s reversal of fortune," Journal of Economic Behavior & Organization, Elsevier, vol. 171(C), pages 312-332.
    2. Fredrik N. G. Andersson, 2023. "The quest for economic stability: a study on Swedish stabilisation policies 1873–2019," Scandinavian Economic History Review, Taylor & Francis Journals, vol. 71(2), pages 128-156, May.
    3. Muscatelli, V Anton, 1998. "Political Consensus, Uncertain Preferences, and Central Bank Independence," Oxford Economic Papers, Oxford University Press, vol. 50(3), pages 412-430, July.
    4. Michael D. Bordo & Mickey D. Levy, 2020. "Do Enlarged Fiscal Deficits Cause Inflation: The Historical Record," NBER Working Papers 28195, National Bureau of Economic Research, Inc.
    5. Jonung, Lars, 2022. "The Problems of Inflation Targeting Originate in the Monetary Theory of Knut Wicksell," Working Papers 2022:8, Lund University, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:scotjp:v:43:y:1996:i:4:p:444-67. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/sesssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.