Newby, Elisa - In: Journal of Economic Dynamics and Control 36 (2012) 10, pp. 1498-1519
This paper models the gold standard as a state contingent commitment technology that is only feasible during peace. Monetary policy during war, when the gold convertibility rule is suspended, can still be credible, if the policymaker's plan is to resume the gold standard in the future. The DSGE...