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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. 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.
  2. 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.
  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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