The Stability of the Gold Standard and the Evolution of the International Monetary System

Tamim Bayoumi and Barry Eichengreen

No 1995/089, IMF Working Papers from International Monetary Fund

Abstract: This paper examines some popular explanations for the smooth operation of the pre-1914 gold standard. We find that the rapid adjustment of economies to underlying disturbances played an important role in stabilizing output and employment under the gold standard system, but no evidence that this success also reflected relatively small underlying disturbances. Finally, the paper also suggests an explanation for the evolution of the international monetary system based on growing nominal inertia over time.

Keywords: WP; aggregate demand; aggregate supply; gold standard; price; aggregate supply supply curve; aggregate-supply-aggregate-demand framework; framework of the paper; gold standard year; aggregate demand demand schedule; aggregate supply supply schedule; gold standard country; gold standard system; short-run aggregate supply supply curve; Gold; Supply shocks; Exchange rates; International monetary system; Exchange rate arrangements; Europe (search for similar items in EconPapers)
Pages: 32
Date: 1995-09-01
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: The Stability of the Gold Standard and the Evolution of the International Monetary System (1995)
Working Paper: The Stability of the Gold Standard and the Evolution of the International Monetary System (1994)
Working Paper: The Stability of the Gold Standard and the Evolution of the International Monetary System (1994)
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