Were there Anomalies in the Sterling-Franc Exchange Rate Regulation during the Mid-19th Century?
AbstractIn this paper, we test whether French and British central banks discount rates were an efficient tool for currency stabilisation over the 1850-1870 period. Causality and impulse analysis as well as outlier methodology are carried out in order to test this proposition. We give strong evidence that the discount rate differential between France and England had a crucial corrective influence on the Sterling-Franc spot exchange rate. Regarding this exchange rate regulation hypothesis, we find only one single anomaly which occurred in February 1861. The assessment of the historical context helps to understand this peculiar event. We conclude to the absence of anomalies in the Sterling-Franc exchange rate regulation over the 1850-1870 period.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Association Française de Cliométrie (AFC) in its series Working Papers with number 06-08.
Length: 19 pages
Date of creation: 2006
Date of revision:
Exchange rate; Discount rate; Regulation; Causality and impulse analysis; Outliers; Cliometrics;
Find related papers by JEL classification:
- N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
- N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karine Pellier).
If references are entirely missing, you can add them using this form.