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The Ties that Divide. A Network Analysis of the International Monetary System

Author

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  • Flandreau, Marc
  • Jobst, Clemens

Abstract

This paper provides a new methodology to map international monetary relations in the 19th century. We identify an index of international liquidity and, applying techniques borrowed from formal network analysis (in particular, blockmodelling) we produce a formal ranking of currencies according to their degree of international circulation. The resulting indices are powerful tools to study the logic of the emergence of international currencies, as well as useful controls for cross-section regressions.

Suggested Citation

  • Flandreau, Marc & Jobst, Clemens, 2005. "The Ties that Divide. A Network Analysis of the International Monetary System," CEPR Discussion Papers 5129, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:5129
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    References listed on IDEAS

    as
    1. Hartmann,Philipp, 2007. "Currency Competition and Foreign Exchange Markets," Cambridge Books, Cambridge University Press, number 9780521046930.
    2. Michael P. Dooley & David Folkerts-Landau & Peter M. Garber, 2005. "An essay on the revived Bretton Woods system," Proceedings, Federal Reserve Bank of San Francisco, issue Feb.
    3. Mr. Luis Catão & Mr. Solomos Solomou, 2003. "Exchange Rates in the Periphery and International Adjustment Under the Gold Standard," IMF Working Papers 2003/041, International Monetary Fund.
    4. Marc Flandreau & Nathan Sussman, 2004. "Old sins. Exchange Clauses and European Foreign Lending in the 19th Century," Sciences Po publications n°4248, Sciences Po.
    5. repec:hal:wpspec:info:hdl:2441/324 is not listed on IDEAS
    6. repec:hal:spmain:info:hdl:2441/324 is not listed on IDEAS
    7. Flandreau, Marc & Sussman, Nathan, 2004. "Old Sins: Exchange Rate Clauses and European Foreign Lending in the 19th Century," CEPR Discussion Papers 4248, C.E.P.R. Discussion Papers.
    8. repec:hal:spmain:info:hdl:2441/602 is not listed on IDEAS
    9. Marc Flandreau, 1997. "The Gold Standard in Theory and History," Post-Print hal-03416310, HAL.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Key currency; Networks; Pound sterling; International monetary system;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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