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Scylla and Charybdis. Explaining Europe’s Exit from Gold, January 1928- December 1936

  • Wolf, Nikolaus

The paper examines the timing of exit from the interwar gold-exchange standard for a panel of European countries, based on monthly data over the period January 1928 - December 1936. I show that the decision of exit from gold can be understood in terms of a trade-off between a quite limited set of factors commonly suggested in the theoretical literature on currency crises. A simple and parsimonious econometric framework that nests various hypotheses allows predicting the very month when a country will exit gold in the 1930s.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6685.

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Date of creation: Feb 2008
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Handle: RePEc:cpr:ceprdp:6685
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