The Gold Standard in Theory and History

Book Cover......Page 1
Half-Title......Page 2
Title......Page 3
Copyright......Page 4
Dedication......Page 5
Contents......Page 6
Preface and Acknowledgements......Page 8
1 Editors’ introduction......Page 9
The emergence of the international gold standard......Page 11
Forms of the gold standard......Page 13
Exchange rates under the gold standard......Page 14
The efficiency view......Page 15
The discipline view......Page 17
The modern synthesis: the gold standard as a credible target zone......Page 18
The roots of credibility......Page 20
From the prewar gold standard to the interwar gold exchange standard......Page 21
The Bretton Woods gold-dollar standard and after......Page 24
Notes......Page 25
References......Page 27
Part I The gold standard in theory......Page 30
Introduction......Page 31
2 On the balance of trade......Page 32
Notes......Page 38
3 The working of the prewar gold standard......Page 39
Notes......Page 47
The monetary theory and its implications for the gold standard......Page 48
Did international markets work well?......Page 50
Money, gold and the balance of payments......Page 54
Notes......Page 58
References......Page 60
5 A portfolio-balance model of the gold standard*......Page 62
A portfolio theoretic interpretation......Page 63
The Canadian price level and balance of trade......Page 64
Canadian asset equilibrium under the gold standard......Page 66
The portfolio theoretic reinterpretation of the Canadian evidence......Page 68
Conclusions......Page 72
Data appendix......Page 73
Notes......Page 74
References......Page 75
Introduction......Page 78
The gold standard as a contingent rule......Page 79
An international rule......Page 82
Inflation persistence......Page 83
Credibility bands......Page 85
Access to foreign capital as a commitment mechanism by peripheral countries......Page 86
The behavior of interest rates and exchange rates during suspension periods......Page 88
The pattern of shares of finance in government expenditure during wartime......Page 90
Revenue smoothing......Page 91
Suggestions for future research......Page 92
The lessons from history......Page 93
Notes......Page 95
References......Page 97
Part II The gold standard in history......Page 101
Introduction......Page 102
7 The significance of the gold points......Page 103
Notes......Page 108
Textbook abstract......Page 109
Historical abstract......Page 110
Reinterpretation and conclusions......Page 113
A gentle reminder of the apostles of gold money......Page 115
Monetary expansion and international reserves before World War I......Page 118
Notes......Page 122
References......Page 123
9 Notes on the working of the gold standard before 1914......Page 124
Notes......Page 140
References......Page 142
10 The gold standard since Alec Ford......Page 143
Notes on the working of the gold standard before 19144......Page 144
Statistical analysis......Page 145
Interpretation......Page 153
Conclusion......Page 155
References......Page 156
A fixed-rate international monetary system: description, definitions, and analysis......Page 158
The rise of the gold standard: international dynamics......Page 161
The rise and reign of gold: domestic-international dynamics......Page 164
Notes......Page 169
Part III The interwar gold exchange standard......Page 172
Introduction......Page 173
Introduction......Page 174
Notes......Page 183
The international gold standard......Page 185
Primary objective of the gold standard......Page 186
Secondary objectives of the gold standard......Page 187
Conditions necessary for the working of the gold standard......Page 188
The recent working of the gold standard......Page 189
The question of an international standard......Page 191
Devaluation......Page 192
The prospects of the gold standard......Page 193
Note......Page 195
The recommendations of the Genoa Conference......Page 196
Prewar antecedents of the gold exchange standard......Page 197
Modification of central bank statutes......Page 198
Sources of central banks’ exchange holdings......Page 199
Fluctuations in foreign-exchange reserves prior to 1931......Page 200
France on the gold exchange standard......Page 202
The breakdown of the gold exchange standard......Page 204
Merits and defects of the system......Page 206
Notes......Page 213
References......Page 214
Part IV Bretton Woods and after......Page 215
Introduction......Page 216
The gold-dollar system......Page 217
Reserves......Page 218
The adjustment process: countries in deficit......Page 223
The adjustment process: countries in surplus......Page 226
Deterioriation of the system......Page 230
Note......Page 231
Introduction......Page 232
The role of capital controls......Page 233
Post-war reconstruction and Bretton Woods......Page 235
Implications for international monetary reform 13......Page 236
Currency boards......Page 237
Target zones......Page 238
A Tobin tax......Page 239
Notes......Page 240
References......Page 241
Further reading......Page 243
References......Page 244
Index......Page 247