Die Bedeutung der Geschichte für die Wirtschafts-wissenschaften und der ökonomischen Theorie für die Geschichtsforschung
Economics and historical analysis have much to learn from each other, a fact more and more neglected in research and theory building, and especially in university instruction in German-speaking countries. The lecture tries to illustrate this by demonstrating that certain economic relationships like Gresham's law asserting that bad money drives out good with fixed exchange rates have been valid at least since Aristophanes. Similarly, it is also shown that the substitution of bad by good money (Thiers' law) and that similar magnitudes of overshooting of exchange rates, given flexible rates, during high inflation, have been present for at least four centuries. These results refute the hypothesis asserted by some well-known historians that there can be no economic laws valid in different and distant periods of history. And second, the evidence proves the usefulness of putting the hypotheses of economics to the test of history. For instance the observation that the maximal overshooting of flexible currencies showing moderate inflations has been about 30% since the seventeenth century casts doubt on modern theories asserting that such deviations are a consequence of the huge increase of capital movements in recent decades. Moreover, many open questions in economics can only be answered by looking at events which occurred in earlier historical periods. One such question is at which rates of inflation Thiers's law begins to operate, since it obviously does not work at moderate rates of inflation. Copyright Verein für Socialpolitik und Blackwell Publishers Ltd, 2005
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 6 (2005)
Issue (Month): 2 (05)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=1465-6493|
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=1465-6493|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bernholz, Peter & Gartner, Manfred & Heri, Erwin W., 1985. "Historical experiences with flexible exchange rates : A simulation of common qualitative characteristics," Journal of International Economics, Elsevier, vol. 19(1-2), pages 21-45, August.
- Martin Uribe, 1995.
"Hysteresis in a simple model of currency substitution,"
International Finance Discussion Papers
509, Board of Governors of the Federal Reserve System (U.S.).
- Uribe, Martin, 1997. "Hysteresis in a simple model of currency substitution," Journal of Monetary Economics, Elsevier, vol. 40(1), pages 185-202, September.
- P. N. Ireland, 2003. "Bernholz, P.: Monetary Regimes and Inflation: History, Economic and Political Relationships," Journal of Economics, Springer, vol. 80(3), pages 272-276, November.
- Redish, Angela, 2003. "Monetary Regimes and Inflation: History, Economics and Political Relationships. By Peter Bernholz. Northampton, MA: Edward Elgar, 2003. Pp. xi, 210. $85.00," The Journal of Economic History, Cambridge University Press, vol. 63(04), pages 1171-1173, December.
- Dornbusch, Rudiger, 1976. "Expectations and Exchange Rate Dynamics," Journal of Political Economy, University of Chicago Press, vol. 84(6), pages 1161-76, December.
When requesting a correction, please mention this item's handle: RePEc:bla:perwir:v:6:y:2005:i:2:p:131-150. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.