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Market Integration in the Golden Periphery. The Lisbon/London Exchange, 1854-1891

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  • Esteves, Rui Pedro
  • Reis, Jaime
  • Ferramosca, Fabiano

Abstract

Portugal was the first independent nation to follow Britain in joining the gold standard. Although beset by persistent current account deficits and heavily dependent on foreign capital inflows, it enjoyed a relatively stable tenure of 37 years on gold. This paper shows how it was possible to secure currency stability, despite a lower credibility for the peg and a higher incidence of gold point violations than in core countries. The explanation lies in the central role played by institutional actors, such as the Bank of Portugal and/or the government, whose interventions in the exchange market kept the parity within the band.

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Bibliographic Info

Article provided by Elsevier in its journal Explorations in Economic History.

Volume (Year): 46 (2009)
Issue (Month): 3 (July)
Pages: 324-345

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Handle: RePEc:eee:exehis:v:46:y:2009:i:3:p:324-345

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Web page: http://www.elsevier.com/locate/inca/622830

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Keywords: Portugal Classical Gold Standard Target Zones Central Banking;

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References

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Citations

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Cited by:
  1. José Fajardo & Ana Lacerda, 2008. "Statistical Arbitrage with Default and Collateral," Working Papers w200808, Banco de Portugal, Economics and Research Department.
  2. David Greasley & Les Oxley, 2010. "Cliometrics And Time Series Econometrics: Some Theory And Applications," Journal of Economic Surveys, Wiley Blackwell, vol. 24(5), pages 970-1042, December.
  3. Fátima Cardoso & Paulo Soares Esteves, 2008. "The effects of low-cost countries on Portuguese manufacturing import prices," Working Papers w200804, Banco de Portugal, Economics and Research Department.
  4. Esteves, Rui Pedro & Reis, Jaime & Ferramosca, Fabiano, 2009. "Market Integration in the Golden Periphery. The Lisbon/London Exchange, 1854-1891," Explorations in Economic History, Elsevier, vol. 46(3), pages 324-345, July.
  5. George Chouliarakis & Sophia Lazaretou, 2014. "Deja vu? The Greek crisis experience, the 2010s versus the 1930s. Lessons from history," Working Papers 176, Bank of Greece.
  6. Paulo Soares Esteves, 2009. "Are ATM/POS Data Relevant When Nowcasting Private Consumption?," Working Papers w200925, Banco de Portugal, Economics and Research Department.
  7. Coşkun Tunçer, 2012. "Monetary sovereignty during the classical gold standard era: the Ottoman Empire and Europe, 1880-1913," Economic History Working Papers 44725, London School of Economics and Political Science, Department of Economic History.
  8. David Chilosi & Oliver Volckart, 2009. "Money, states and empire: financial integration cycles and institutional change in Central Europe, 1400-1520," Economic History Working Papers 27884, London School of Economics and Political Science, Department of Economic History.
  9. Morys, Matthias, 2013. "Discount rate policy under the Classical Gold Standard: Core versus periphery (1870s–1914)," Explorations in Economic History, Elsevier, vol. 50(2), pages 205-226.

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