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Competing bimetallic ratios: Amsterdam, London and bullion arbitrage in the 18th century

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  • Nogues-Marco, María del Pilar

Abstract

This article analyses the stability of bimetallism in the mid-18th century for the case of two large centres that had different legal ratios and only one international market ratio. A new theoretical framework is articulated for the situation of international independence to set legal bimetallic ratios by monetary authorities in different countries. Then, using new data handcollected from archival sources and relevant to the two main bullion markets in the 18th century, Amsterdam and London, this theoretical framework is utilised to identify the regimes that actually prevailed during that period, in which Amsterdam was effectively on the bimetallic standard while London was on the gold standard de facto.

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  • Nogues-Marco, María del Pilar, 2011. "Competing bimetallic ratios: Amsterdam, London and bullion arbitrage in the 18th century," IFCS - Working Papers in Economic History.WH wp11-03, Universidad Carlos III de Madrid. Instituto Figuerola.
    • Handle: RePEc:cte:whrepe:wp11-03
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    16. Nogues-Marco, María del Pilar, 2011. "The microeconomics of bullionism : arbitrage, smuggling and silver outflows in Spain in the early 18th century," IFCS - Working Papers in Economic History.WH wp11-05, Universidad Carlos III de Madrid. Instituto Figuerola.
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    Cited by:

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    2. Adam Brzezinski & Yao Chen & Nuno Palma & Felix Ward, 2019. "The Vagaries of the Sea: Evidence on the Real Effects of Money from Maritime Disasters in the Spanish Empire," Economics Discussion Paper Series 1906, Economics, The University of Manchester, revised May 2022.
    3. Rita Martins de Sousa, 2019. "Portugal adoption of the gold standard: political reasons for a monetary choice (1846-1854)," Working Papers GHES - Office of Economic and Social History 2019/64, ISEG - Lisbon School of Economics and Management, GHES - Social and Economic History Research Unit, Universidade de Lisboa.
    4. Ma, Debin & Zhao, Liuyan, 2019. "A Silver Transformation: Chinese Monetary Integration in Times of Political Disintegration during 1898-1933," CEPR Discussion Papers 13501, C.E.P.R. Discussion Papers.
    5. Nogues-Marco, Pilar, 2017. "Money Markets and Exchange Rates in Pre-Industrial Europe," Working Papers unige:100808, University of Geneva, Paul Bairoch Institute of Economic History.
    6. Nogues-Marco, Pilar & Herranz-Loncán, Alfonso & Aslanidis, Nektarios, 2017. "The making of a national currency. Spatial transaction costs and money market integration in Spain (1825-1874)," CEPR Discussion Papers 12453, C.E.P.R. Discussion Papers.
    7. Nogues-Marco, María del Pilar, 2011. "The microeconomics of bullionism : arbitrage, smuggling and silver outflows in Spain in the early 18th century," IFCS - Working Papers in Economic History.WH wp11-05, Universidad Carlos III de Madrid. Instituto Figuerola.
    8. G. Geoffrey Booth & Sanders S. Chang, 2017. "Domestic exchange rate determination in Renaissance Florence," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(3), pages 405-445, September.
    9. James Vladimir Torres, 2019. "Bullion and Monetary Flows in the Northern Andes: New Evidence and Insights, 1780-1800," Tiempo y Economía, Universidad de Bogotá Jorge Tadeo Lozano, vol. 6(1), pages 13-45, February.
    10. Nogues-Marco, Pilar & Esteves, Rui, 2019. "Monetary Systems and the Global Balance-of-Payments Adjustment in the Pre-Gold Standard Period, 1700-1870," CEPR Discussion Papers 13652, C.E.P.R. Discussion Papers.
    11. Irigoin, Alejandra & Kobayashi, Atsushi & Chilosi, David, 2023. "China inside out: explaining silver flows in the triangular trade, c.1820s-1870s," Economic History Working Papers 119759, London School of Economics and Political Science, Department of Economic History.

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    More about this item

    Keywords

    Bimetallism;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • F15 - International Economics - - Trade - - - Economic Integration
    • N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913

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