Currency-market devaluations: treating gold as a currency

Michael Kunkler

Applied Economics Letters, 2025, vol. 32, issue 8, 1192-1196

Abstract: The currency market is a relative market, where one currency is priced in terms of another currency. As a consequence, currencies move relative to other currencies so that not all currencies can devalue at the same time. This creates a methodological challenge for measuring devaluations in the currency market as a whole, which may occur due to competitive devaluations, monetary policy coordination, contagion, or other reasons. For example, if there is a coordinated global reflationary policy, what measures the overall currency-market devaluation? In this paper, gold is treated as a currency to create a nominal anchor by which to measure currency-market devaluations, as all the other currencies can devalue relative to gold. In general, there have been three currency-market devaluations since the end of the Bretton Woods international monetary system: 89% between 1972 and 1980; 66% between 2005 and 2012; and 25% between 2019 and 2020.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2024.2302876 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:apeclt:v:32:y:2025:i:8:p:1192-1196

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2024.2302876

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().