1. WAR AND INFLATION IN SPAIN, 1780-1800.
- Author
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Hamilton, Earl J.
- Subjects
PRICE inflation ,ECONOMICS of war ,DEPRECIATION ,AMORTIZATION ,ECONOMISTS - Abstract
The article reports on war and inflation in Spain from 1780-1800. During the last quarter of the eighteenth century, wars or revolutions drove one country after another into paper-money inflation. Under the impact of torrential issues, weak governments and doubtful military prospects. Continental currency and the assignats lost practically all their value and gave way to bimetallic standards. With invasion by French legions momentarily expected, the Bank of England suspended specie payments in 1797 and although depreciation was never disastrous, resumption was not feasible until six years after Waterloo. In 1775 Count Campomanes, one of the ablest economists and greatest ministers in Spanish history, listed as a great national asset the freedom from paper-money inflation that other European countries had suffered. Only five years later war with England forced Spain to issue and over issue paper currency. Appeals to patriotism, intervention in the bullion market, strict prohibition and a host of fiscal measures failed to prevent severe depreciation.
- Published
- 1944
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