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

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  • Wolf, Nikolaus

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 the decision of exit from gold can be understood in terms of a trade-off between a quite limited set of factors commonly suggested in the theoretical literature on currency crises. A simple and parsimonious econometric framework that nests various hypotheses allows predicting the very month when a country will exit gold in the 1930s.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6685.

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Date of creation: Feb 2008
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Handle: RePEc:cpr:ceprdp:6685

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Keywords: Europe; Gold-Exchange Standard; Interwar Period;

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Cited by:
  1. Crafts, Nicholas; Fearon, Peter, 2010. "Lessons from the 1930s' Great Depression," CAGE Online Working Paper Series, Competitive Advantage in the Global Economy (CAGE) 23, Competitive Advantage in the Global Economy (CAGE).
  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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