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.
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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.