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The Gold Standard and Center-Periphery Interactions

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  • Matias Vernengo

Abstract

The Gold Standard was an asymmetrical system, with different rules of the game for the Center and the Periphery. The periphery was for most of the time off the gold standard system, and effectively in an exchange-gold system. This paper will analyze the main effects of this hybrid system on the balance of payments adjustment mechanism of central and peripheral countries. It will be argued that the conventional wisdom that assumed a smooth and symmetrical adjustment of the balance of payments in the center and periphery is incorrect.

Suggested Citation

  • Matias Vernengo, 2003. "The Gold Standard and Center-Periphery Interactions," Working Paper Series, Department of Economics, University of Utah 2003_10, University of Utah, Department of Economics.
    • Handle: RePEc:uta:papers:2003_10
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    File URL: http://economics.utah.edu/research/publications/2003_10.pdf
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    References listed on IDEAS

    as
    1. Krugman, Paul & Taylor, Lance, 1978. "Contractionary effects of devaluation," Journal of International Economics, Elsevier, vol. 8(3), pages 445-456, August.
    2. Barry Eichengreen & Ricardo Hausmann, 1999. "Exchange rates and financial fragility," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 329-368.
    3. Brewer, Anthony, 1985. "Trade with fixed real wages and mobile capital," Journal of International Economics, Elsevier, vol. 18(1-2), pages 177-186, February.
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    More about this item

    Keywords

    Gold Standard; Balance of Payments;

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F39 - International Economics - - International Finance - - - Other

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