The Stability of the Gold Standard and the Evolution of the International Monetary System

Author/Editor:

Tamim Bayoumi ; Barry J. Eichengreen

Publication Date:

September 1, 1995

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines some popular explanations for the smooth operation of the pre-1914 gold standard. We find that the rapid adjustment of economies to underlying disturbances played an important role in stabilizing output and employment under the gold standard system, but no evidence that this success also reflected relatively small underlying disturbances. Finally, the paper also suggests an explanation for the evolution of the international monetary system based on growing nominal inertia over time.

Series:

Working Paper No. 1995/089

Subject:

Commodities Economic theory Exchange rate arrangements Exchange rates Foreign exchange Gold International monetary system Money Supply shocks

English

Publication Date:

September 1, 1995

ISBN/ISSN:

9781451851243/1018-5941

Stock No:

WPIEA0891995

Pages:

32

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