Bretton Woods and its Precursors: Rules versus Discretion in the History of International Monetary Regimes
In recent years the theory of rules and discretion in monetary policy has fascinated academic economists and policy-makers alike. This paper asks whether it can be applied to an understanding of the history of the world monetary system, by focusing on the establishment and the operation of the Bretton Woods regime, and comparing it with its predecessors, in particular the classical gold standard. The paper first discusses the underpinnings, and some of the problems, of a theory of the evolution of the international monetary regime based on alternating rules and discretion. It then assesses the ability of such theories to explain the historical record, first reviewing the rules that characterized the classical gold standard and the motivations to return to gold in the inter-war period. It evaluates the UK and US plan for world monetary reform published in 1943 and the IMF Articles of Agreement. Finally, the paper analyses the data on interest rates and exchange rates during the classical gold standard and the Bretton Woods period to assess the stabilizing properties of the two exchange rate regimes.
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.
|Date of creation:||Jun 1992|
|Date of revision:|
|Contact details of provider:|| Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.|
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:661. 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: ()
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.