The international monetary system, 1844-1870: Arbitrage, efficiency, liquidity

Stefano Ugolini

No 2010/23, Working Paper from Norges Bank

Abstract: This paper analyses the architecture of the international monetary system which preceded the international gold standard (1844-1870). It builds on a newly-created database made up of more than 100,000 weekly observations on exchange rates, interest rates, and bullion prices in the world’s six most important financial centers of the time. Market integration, substitutability of money market instruments, choice of the correct monetary standard reference, and currency liquidity are tested; moreover, an historical analysis is run, with special reference to financial crises. Contrary to received wisdom, the results point to a trend towards increasing multipolarism in the international monetary system before 1870.

Keywords: International monetary system; financial integration; money markets; bimetallism (search for similar items in EconPapers)
JEL-codes: E42 F31 N20 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2010-11-23
New Economics Papers: this item is included in nep-his, nep-ifn, nep-mac and nep-mon
References: View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:bno:worpap:2010_23

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