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The Analytics of Bimetallism

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  • Dowd, Kevin

Abstract

This paper presents a simple model showing how the price level is determined under bimetallism and responds under it to changes in various exogenous variables. It also assesses the stability of the price level under bimetallism and compares the stability of the bimetallic price level with the stability of the price level under a gold standard. The model provides a number of new theoretical results about bimetallism. It also bears out the bimetallist claim that the bimetallic price level should be more stable than the price level under a monometallism provided other things are reasonably equal and both precious metals are used for monetary purposes. Copyright 1996 by Blackwell Publishers Ltd and The Victoria University of Manchester

Suggested Citation

  • Dowd, Kevin, 1996. "The Analytics of Bimetallism," The Manchester School of Economic & Social Studies, University of Manchester, vol. 64(3), pages 281-297, September.
    • Handle: RePEc:bla:manch2:v:64:y:1996:i:3:p:281-97
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    Cited by:

    1. Richard C.K. Burdekin & Kris James Mitchener & Marc D. Weidenmier, 2012. "Irving Fisher and Price-Level Targeting in Austria: Was Silver the Answer?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44(4), pages 733-750, June.
    2. Francois R. Velde & Warren E. Weber, 2000. "A Model of Bimetallism," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1210-1234, December.

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