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Scylla and Charybdis. Explaining Europe’s Exit from Gold, January 1928 – December 1936

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  • Nikolaus Wolf

Abstract

The paper examines the timing of exit from the interwar gold-exchange standard for a panel of European countries, based on monthly data over the period January 1928 - December 1936. I show that exit from gold can be understood in terms of a trade-off between a limited set of factors commonly suggested in the theoretical literature on currency crises. A simple and parsimonious econometric framework that nests various hypotheses allows me to predict the month of exit in the 1930s, except for France. I consider the separate cases of France and Poland to show my results shed light on country-specific debates.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2008/wp-cesifo-2008-04/cesifo1_wp2271.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2271.

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Date of creation: 2008
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Handle: RePEc:ces:ceswps:_2271

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Keywords: gold-exchange standard; interwar period; Europe;

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Cited by:
  1. Nicholas Crafts & Peter Fearon, 2010. "Lessons from the 1930s Great Depression," Oxford Review of Economic Policy, Oxford University Press, vol. 26(3), pages 285-317, Autumn.
  2. Kris James Mitchener & Kirsten Wandschneider, 2014. "Capital Controls and Recovery from the Financial Crisis of the 1930s," NBER Working Papers 20220, National Bureau of Economic Research, Inc.
  3. Nikolaus Wolf, 2012. "Crises and Policy Responses within the Political Trilemma: Europe, 1929-1936 and 2008-2011," Working Papers 0016, European Historical Economics Society (EHES).

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