The paper studies an idealized gold standard in a two-country setting. Unless national policies for domestic credit … expansion (dce) are flexible enough to offset the effect of money demand shocks on international gold reserves, the gold … respond to these shocks, the public debt is likely to rise (or fall) to unsustainable levels. The idealized gold standard …

the classical gold standard. The international gold-based fixed exchange rate regime that surfaced during the 1870s has … `transaction costs' and `political economy' theories. Finally, we provide an alternative explanation of the emergence of the gold … standard. Our conclusion is twofold. First, we argue that the making of the gold standard was very much the result of path …

Did adoption of the gold standard exacerbate or diminish macroeconomic volatility? Supporters thought so, critics … thought not, and theory offers ambiguous messages. A hard exchange-rate regime such as the gold standard might limit monetary … absorption in a world of real shocks and nominal stickiness. A simple model shows how a lack of flexibility can be discerned in …

This paper surveys studies of the classical Gold Standard published subsequent to Alec Ford's The Gold Standard 1880 …-flow interactions in bond markets. The paper then addresses how the Gold Standard worked. A key element of my explanation for the … stability of the Gold Standard is the credibility of the official commitment to gold. Knowing that policy-makers would intervene …

This paper examines some popular explanations for the smooth operation of the pre-1914 gold standard. We find that the … the gold standard system, but no evidence that this success also reflected relatively small underlying disturbances …

We compare the resumption of convertibility into gold by the United States in 1879 and the United Kingdom in 1925 to …

The high level of trade and financial integration reached by Europe both today and under the late 19th century gold … draw a fresh picture of the European gold standard, and use it to derive a number of useful implications. The paper’s basic … finding is that the stability of the European gold standard depended on the stance of the common monetary policy. Under the …

era of globalization - the era of the Classical Gold Standard. Does the new financial environment of free capital flows … world (Fed) interest rate. This new regime, with exchange rate flexibility, generates sufficient short term volatility that … prevents short term arbitrage against central banks that deviate from the Fed rate. In contrast, during the Gold Standard only …