Abstract
The Classical Gold Standard period, with high capital mobility and fixed-exchange rates, is usually seen as the extreme case of international constraints on monetary policy. Contrary to this view, we show how central bank balance sheets offset the effects of international shocks on domestic interest rates. In contrast, in the United States, a gold standard country without a central bank, the reaction of money market rates was two to four times stronger than that of interest rates in countries with a central bank. Our study is based on the monthly balance sheets of all central banks in the world (i.e., 21) from 1891–1913.
Original language | English |
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Pages (from-to) | 801-839 |
Number of pages | 39 |
Journal | Journal of economic history |
Volume | 82 |
Issue number | 3 |
Early online date | 1 Aug 2022 |
DOIs | |
Publication status | Published - 1 Oct 2022 |
Bibliographical note
© The Author(s), 2022. This is an author-produced version of the published paper. Uploaded in accordance with the publisher’s self-archiving policy.Datasets
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Taming the Global Financial Cycle. Central Banks as Shock Absorbers in the First Era of Globalization
Bazot, G. (Creator), Monnet, E. (Creator) & Morys, M. (Creator), ICPSR - Interuniversity Consortium for Political and Social Research, 2022
DOI: 10.3886/e170301v1
Dataset