Kōrero: Prices and inflation

Bank on goldfields

This branch of the Bank of New Zealand, probably at Arthur’s Point near Queenstown, in 1864, advertises that it accepts deposits of gold. At that time banks promised the bearer of bank notes that they would pay the equivalent in gold; and therefore the total volume of New Zealand’s money was limited by the amount of gold the government held. This ‘gold standard’ usually led to deflation, because the volume of goods and services increased faster than the amount of gold discovered.

Te whakamahi i tēnei tūemi

Alexander Turnbull Library
Reference: 1/1-000594; F

Permission of the Alexander Turnbull Library, National Library of New Zealand, Te Puna Mātauranga o Aotearoa, must be obtained before any re-use of this image.

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Te tuhi tohutoro mō tēnei whārangi:

Adolf Stroombergen, 'Prices and inflation - Price falls and rises, 19th and 20th centuries', Te Ara - the Encyclopedia of New Zealand, http://www.TeAra.govt.nz/mi/zoomify/23084/bank-on-goldfields (accessed 11 June 2023)

He kōrero nā Adolf Stroombergen, i tāngia i te 11 Mar 2010