INTERNATIONAL RESERVES CRISES, MONETARY INTEGRATION, AND THE PAYMENTS SYSTEM DURING THE INTERNATIONAL GOLD STANDARD

Paula Hern Ndez-Verme
Authors registered in the RePEc Author Service: Paula L. Hernandez-Verme ()

Macroeconomic Dynamics, 2005, vol. 9, issue 04, pages 516-541

Abstract: I model an international payments system with a financial center and periphery to reproduce various aspects of the International Gold Standard. This period was characterized by frequent crises associated with scarce stocks of reserves, high short-term interest rates with subsequent gold inflows, and transmission of output contractions across countries. I find that a common international currency and no legal restrictions on exchange help the periphery share reserves with the financial center, improving the world s welfare and mitigating output losses due to reserve crises. Also, the center has incentives for restrictive rediscounting while the periphery has motives for developing central banking.

Date: 2005
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://journals.cambridge.org/abstract_S1365100505040289 link to article abstract page (text/html)

Related works:
Working Paper: International Reserves Crises, Monetary Integration and the Payments System during the International Gold Standard (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:cup:macdyn:v:9:y:2005:i:04:p:516-541_04

Access Statistics for this article

More articles in Macroeconomic Dynamics from Cambridge University Press
Address: The Edinburgh Building, Shaftesbury Road, Cambridge CB2 2RU UK
Series data maintained by Duncan Rule ().