Dollar-Sterling Exchange Market

Lawrence H. Officer ()
Additional contact information
Lawrence H. Officer: University of Illinois at Chicago

Chapter Chapter 21 in Essays in Economic History, 2022, pp 377-404 from Springer

Abstract: Abstract Gold-point arbitrage (or intervention-point respect by authorities) is investigated on a monthly basis for three fixed dollar-sterling exchange-rate periods: 1890–1906, 1925–1931, 1950–1966. Systemic market inefficiency, in the sense of the exchange rate going beyond (“violating”) the gold-point spread, is soundly rejected. There are only three, isolated, months of a gold-point violation in 1890–1906, none in 1925–1931, and (for comparison) one month in 1950–1966. Regime efficiency, a short-run phenomenon, is measured by the closeness of the exchange rate to the spread midpoint. Both quarterly and monthly observations are used, with the former enabling application to more time periods. Among the conclusions is that the long-run inefficiency of the interwar gold standard did not translate into short-run regime inefficiency.

Keywords: Gold-point violations; Dollar-sterling; Exchange rate; Market efficiency; Regime efficiency; Gold standard; Bretton Woods; Gold-point arbitrage; Gold points; Confidence; Gold-point spread (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-030-95925-8_21

Ordering information: This item can be ordered from
http://www.springer.com/9783030959258

DOI: 10.1007/978-3-030-95925-8_21

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().