International Reserves Crises, Monetary Integration and the Payments System during the International Gold Standard

Paula Hernandez-Verme ()
Additional contact information
Paula Hernandez-Verme: Department of Economics and Finance, Universidad de Guanajuato

No EC200904, Department of Economics and Finance Working Papers from Universidad de Guanajuato, Department of Economics and Finance

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.

Keywords: International Gold Standard; International payments systems; International reserve crises; Monetary integration (search for similar items in EconPapers)
JEL-codes: E32 E42 E58 F33 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2009-07
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://economia.ugto.org/WorkingPapers/EC200904.pdf (application/pdf)

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:gua:wpaper:ec200904

Access Statistics for this paper

More papers in Department of Economics and Finance Working Papers from Universidad de Guanajuato, Department of Economics and Finance Contact information at EDIRC.
Bibliographic data for series maintained by Luis Sanchez Mier ( this e-mail address is bad, please contact ).