In this post I just did a bit of educated guessing about where the monetary regime breaks should go over the past 300+ years in the UK (time series from here). Turns out all but one (in 1790) roughly correspond to points where interest rates changed from being/not being "pegged" (see here, here, and here):
I plan on doing a future post where I see if I can make this into a more scientific proposition rather than some vague empirical eyeballing ...
Yes please! I find historical data comparisons extremely interesting from the point of view of validating an economic model. Much more interesting than beating up on Scott Sumner or trolling Cochrane...ReplyDelete
Hmm 1790- war expenditures from the American war of independence?
So it's likely another form of going off of a currency peg (gold standard)? Interesting.Delete
That was just a guess at the time :)Delete
I'd like figure out the divisions in a more robust way ...