Generating the Wealth of nations 13: The Fixed Price of Gold and the "Real" Value of Gold in the US, 1800-1914

In constructing this chart, I have used the "official" US price of gold, which was $19.39 per ounce from 1800 to 1834 and $20.67 per ounce from 1834 through 1933.  I have adjusted the official price of gold by dividing by the CPI in the US; periods during which the "real" value of gold is falling are periods of inflation, and periods during which the "real" value of gold are rising are periods of deflation.

 

 

(Click to enlarge)

 

The deflation of the 1820s and the "long deflation" of the 1870s throught the 1890s are evident, as is the inflation curing the Civil War.