IDEAS home Printed from https://ideas.repec.org/p/nsb/mhnsee/2.html

„What did guide investors decisions” during the classical gold standard era? The case of Ottoman Empire, 1880-1914

Author

Listed:
  • Ali Coskun Tuncer

    (LSE and Ondokuz Mayis University)

Abstract

It has been conventionally argued that the gold standard, as a “good housekeeping seal of approval”, provided an easy access to the international financial markets for the peripheral countries during the classical gold standard era. This paper, by relying on the Ottoman case, questions the importance of the gold-related monetary regime (limping gold standard) as a determinant of investors’ decisions, and attempts to answer the question of “what did guide the investors’ decisions” by relying on the revisionist gold standard literature and historical data. It is concluded that International Financial Control exercised by the representatives of the creditors on the Ottoman finances was an important determinant of the cost of borrowing which was neglected by the literature.

Suggested Citation

  • Ali Coskun Tuncer, 2009. "„What did guide investors decisions” during the classical gold standard era? The case of Ottoman Empire, 1880-1914," SEEMHN papers 2, National Bank of Serbia.
    • Handle: RePEc:nsb:mhnsee:2
    Note: The paper was presented at the Fourth Annual SEEMHN Conference hosted by the National Bank of Serbia, 27 March 2009 in Belgrade.
    as

    Download full text from publisher

    File URL: https://www.nbs.rs/documents/publikacije/konferencije/seemhn_conf/SEEMHN_10_Coskun.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:spo:wpmain:info:hdl:2441/605 is not listed on IDEAS
    2. Christopher M. Meissner, 2003. "Exchange-Rate Regimes and International Trade: Evidence from the Classical Gold Standard Era," American Economic Review, American Economic Association, vol. 93(1), pages 344-353, March.
    3. repec:spo:wpecon:info:hdl:2441/622 is not listed on IDEAS
    4. Michael D. Bordo & Marc Flandreau, 2003. "Core, Periphery, Exchange Rate Regimes, and Globalization," NBER Chapters, in: Globalization in Historical Perspective, pages 417-472, National Bureau of Economic Research, Inc.
    5. Matias Vernengo, 2003. "The Gold Standard and Centre-Periphery Interactions," Chapters, in: Louis-Philippe Rochon & Sergio Rossi (ed.), Modern Theories of Money, chapter 22, pages 544-560, Edward Elgar Publishing.
    6. repec:spo:wpecon:info:hdl:2441/605 is not listed on IDEAS
    7. Rui Pedro Esteves, 2007. "Quis custodiet quem? Sovereign Debt and Bondholders` Protection Before 1914," Economics Series Working Papers 323, University of Oxford, Department of Economics.
    8. Flandreau, Marc & Jobst, Clemens, 2005. "The Ties that Divide: A Network Analysis of the International Monetary System, 1890–1910," The Journal of Economic History, Cambridge University Press, vol. 65(4), pages 977-1007, December.
    9. 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.
    10. Thorsten Beck & Ross Levine, 2008. "Legal Institutions and Financial Development," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 11, pages 251-278, Springer.
    11. Marc Flandreau & Nathan Sussman, 2004. "Old sins. Exchange Clauses and European Foreign Lending in the 19th Century," Working Papers hal-01065494, HAL.
    12. 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.
    13. repec:spo:wpmain:info:hdl:2441/622 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:nsb:seemhn:2 is not listed on IDEAS
    2. Morys, Matthias, 2013. "Discount rate policy under the Classical Gold Standard: Core versus periphery (1870s–1914)," Explorations in Economic History, Elsevier, vol. 50(2), pages 205-226.
    3. Michael D. Bordo & Christopher M. Meissner & Marc D. Weidenmier, 2006. "Currency Mismatches, Default Risk, and Exchange Rate Depreciation: Evidence from the End of Bimetallism," NBER Working Papers 12299, National Bureau of Economic Research, Inc.
    4. Monnet, Eric & Velde, François R., 2020. "Money, Banking, and Old-School Historical Economics," CEPR Discussion Papers 15348, C.E.P.R. Discussion Papers.
    5. Mauricio Drelichman & Hans‐Joachim Voth, 2011. "Lending to the Borrower from Hell: Debt and Default in the Age of Philip II," Economic Journal, Royal Economic Society, vol. 121(557), pages 1205-1227, December.
    6. Esteves, Rui Pedro & Reis, Jaime & Ferramosca, Fabiano, 2009. "Market Integration in the Golden Periphery. The Lisbon/London Exchange, 1854-1891," Explorations in Economic History, Elsevier, vol. 46(3), pages 324-345, July.
    7. Mauricio Drelichman & Joachim Voth, 2007. "Lending to the borrower from hell: Debt and default in the age of Philip II, 1556-1598," Economics Working Papers 1164, Department of Economics and Business, Universitat Pompeu Fabra, revised Nov 2009.
    8. Barry Eichengreen, 2008. "Sui Generis EMU," NBER Working Papers 13740, National Bureau of Economic Research, Inc.
    9. Olivier Accominotti & Delio Lucena‐Piquero & Stefano Ugolini, 2021. "The origination and distribution of money market instruments: sterling bills of exchange during the first globalization," Economic History Review, Economic History Society, vol. 74(4), pages 892-921, November.
    10. Marc Flandreau & Juan H. Flores & Norbert Gaillard & Sebastián Nieto-Parra, 2010. "The End of Gatekeeping: Underwriters and the Quality of Sovereign Bond Markets, 1815–2007," NBER Chapters, in: NBER International Seminar on Macroeconomics 2009, pages 53-92, National Bureau of Economic Research, Inc.
    11. Arnaud Mehl & Julien Reynaud, 2008. "Domestic Debt Structures in Emerging Markets : New Empirical Evidence," Post-Print halshs-00332049, HAL.
    12. Marc Flandreau & Clemens Jobst, 2006. "The Empirics of International Currencies: Evidence from the 19th Century," Working Papers hal-01065631, HAL.
    13. repec:spo:wpmain:info:hdl:2441/605 is not listed on IDEAS
    14. Arola, Mika, 2006. "Foreign capital and Finland: central government's firstperiod of reliance on international financial markets 1862-1938," Bank of Finland Scientific Monographs, Bank of Finland, volume 0, number sm2006_037, December.
    15. Tunçer, Coşkun, 2012. "Monetary sovereignty during the classical gold standard era: the Ottoman Empire and Europe, 1880-1913," Economic History Working Papers 44725, London School of Economics and Political Science, Department of Economic History.
    16. Nils Herger, 2016. "Interest parity conditions during the classical gold standard (1880 -1914) - Evidence from the investment demand for bills of exchange in Europe," Discussion Papers 1607, University of Exeter, Department of Economics.
    17. repec:ehl:lserod:44725 is not listed on IDEAS
    18. De Nicola, Giacomo & Fritz, Cornelius & Mehrl, Marius & Kauermann, Göran, 2023. "Dependence matters: Statistical models to identify the drivers of tie formation in economic networks," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 351-363.
    19. Roldan Alba, 2022. "The Golden Fetters in the Mediterranean Periphery. How Spain and Italy Overcame Business Cycles Between 1870 and 1913?," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 16(1), pages 170-193, January.
    20. Colliac, Stéphane & Lapteacru, Ion, 2008. "Three countries' debt profiles: Average maturities in Mexico, Brazil, and Russia," Journal of Multinational Financial Management, Elsevier, vol. 18(2), pages 94-111, April.
    21. repec:spo:wpmain:info:hdl:2441/603 is not listed on IDEAS
    22. Marc Flandreau, Kim Oosterlinck, 2011. "Was the Emergence of the International Gold Standard Expected? Melodramatic Evidence from Indian Government Securities," IHEID Working Papers 01-2011, Economics Section, The Graduate Institute of International Studies.
    23. Akerman, Anders & Seim, Anna Larsson, 2014. "The global arms trade network 1950–2007," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 535-551.
    24. Mariko Hatase, 2023. "How Do People Form the Perception of a Link between Foreign Exchange Rates and Exports? The Experience of Japan in the 1920s," IMES Discussion Paper Series 23-E-08, Institute for Monetary and Economic Studies, Bank of Japan.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nsb:mhnsee:2. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marko Miseljic (email available below). General contact details of provider: https://edirc.repec.org/data/nbjgvyu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.