ECON 2200E Lecture Notes - Lecture 2: Smallpox, Aggregate Demand, Perfect Competition
22 Apr 2017
School
Department
Course
Professor
Document Summary
21, 1861 in virginia, but the union was forced to retreat to dc: winfield scott a u. s. army general promoted his. Called for a naval blockade of southern ports: first, it would cause the south to find it more challenging to import industrial goods and munitions. This would cause the prices in the south to rise. Before the war cotton would export at a higher price than without international trade. But this put downward pressure on the domestic price of cotton. If turnover of currency increases velocity of money increases. If this turnover is great enough hyperinflation ensues. Union, emphasizing that it was the patriotic duty of citizens: about 57, paper printing, legal tender act of 1862 allow the government to print. Greenbacks which were called this because of the green ink printed on their backs; green backs were fiat money with no intrinsic value: 18%
