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The Drachma, Foreign Creditors and the International Monetary System: Tales of a Currency during the 19th and the Early 20th Century Author info | Abstract | Publisher info | Download info | Related research | Statistics Sophia Lazaretou () (Bank of Greece, Economic Research Department)
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Fixed exchange rate regimes can be regarded as a “rule with escape clauses”, allowing the monetary authorities to temporarily suspend convertibility and enact a discretionary policy only under well-understood contingencies, such as wartime emergencies and financial panics. Seen from this perspective, adherence to the specie convertibility rule enables peripheral countries to establish credibility of the nation’s economic policy and, thus, to obtain access to the core countries’ capital markets. The evidence assembled in the paper, both historical and empirical, supports the conclusion that Greece seems to have tried very hard to adhere to “good housekeeping rules”.
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Paper provided by Bank of Greece in its series Working Papers with number
16.
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Length: 33 pages
Date of creation: Aug 2004Date of revision:
Publication status: Published in Explorations in Economic History, 2005, 42 (2), pp. 202-236.Handle: RePEc:bog:wpaper:16Contact details of provider: Web page: http://www.bankofgreece.gr More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Christina Tsochatzi).
Keywords: specie standards ; foreign borrowing ; peripheral country ; Find related papers by JEL classification: F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913
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