EconPapers    
Economics at your fingertips  
 

Taming the Global Financial Cycle: Central Banks as Shock Absorbers in the First Era of Globalization

Guillaume Bazot, Eric Monnet and Matthias Morys

The Journal of Economic History, 2022, vol. 82, issue 3, 801-839

Abstract: The Classical Gold Standard period, with high capital mobility and fixed-exchange rates, is usually seen as the extreme case of international constraints on monetary policy. Contrary to this view, we show how central bank balance sheets offset the effects of international shocks on domestic interest rates. In contrast, in the United States, a gold standard country without a central bank, the reaction of money market rates was two to four times stronger than that of interest rates in countries with a central bank. Our study is based on the monthly balance sheets of all central banks in the world (i.e., 21) from 1891–1913.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
Working Paper: Taming the Global Financial Cycle: Central Banks as Shock Absorbers in the First Era of Globalization (2022)
Working Paper: Taming the Global Financial Cycle: Central Banks as Shock Absorbers in the First Era of Globalization (2022)
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: https://EconPapers.repec.org/RePEc:cup:jechis:v:82:y:2022:i:3:p:801-839_6

Access Statistics for this article

More articles in The Journal of Economic History from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().

 
Page updated 2024-06-17
Handle: RePEc:cup:jechis:v:82:y:2022:i:3:p:801-839_6