International Reserves Crises, Monetary Integration and the Payments System during the International Gold Standard
AbstractI model an international payments system with a financial center and periphery to reproduce various aspects of the International Gold Standard. This period was characterized by frequent crises associated with scarce stocks of reserves, high short-term interest rates with subsequent gold inflows and transmission of output contractions across countries. I find that a common international currency and no legal restrictions on exchange help the periphery share reserves with the financial center, improving the world’s welfare and mitigating output losses due to reserve crises. Also, the center has incentives for restrictive rediscounting while the periphery has motives for developing central banking.
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Bibliographic InfoPaper provided by Universidad de Guanajuato, Department of Economics and Finance in its series Department of Economics and Finance Working Papers with number EC200904.
Length: 31 pages
Date of creation: Jul 2009
Date of revision:
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More information through EDIRC
International Gold Standard; International payments systems; International reserve crises; Monetary integration;
Other versions of this item:
- Hern Ndez-Verme, Paula, 2005. "International Reserves Crises, Monetary Integration, And The Payments System During The International Gold Standard," Macroeconomic Dynamics, Cambridge University Press, vol. 9(04), pages 516-541, September.
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
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