The Reservation Inflation of Hard Money: Gold-Standard Deflation and the Real Expansion of Nominal Claims, 1873-1896 (opens in new tab)

The original SCR theory proposed that inflation has two distinct expressions: circulation inflation, measured by rising transaction prices, and reservation inflation, measured by the rising real weight of monetary symbols, debt contracts, reserve claims, and other nominal stores of value relative to physical goods. A companion Japan paper tested one side of this theory by showing that, after money entered a reserve-dominant phase, monetary-base ...