The Inter-War Gold Exchange Standard: Credibility and Monetary Independence

Michael Bordo and Ronald MacDonald

No 8429, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper we analyze the operation of the inter-war gold exchange standard to see if the evident credibility of the system conferred on participating central banks the ability to pursue independent monetary policies. To answer this question we econometrically analyze two key parity, or arbitrage, conditions, namely uncovered interest rate parity and a yield gap relationship. We find that there were both long- and short-run deviations from the arbitrage conditions. The use to which this policy independence was put is analyzed in the context of a multivariate system, which includes reaction function variables.

JEL-codes: F31 G15 (search for similar items in EconPapers)
Date: 2001-08
New Economics Papers: this item is included in nep-ifn and nep-mon
Note: DAE ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published as Bordo, Michael D. and Ronald MacDonald. "Interest Rate Interactions In The Classical Gold Standard, 1880-1914: Was There Any Monetary Independence?," Journal of Monetary Economics, March 2005, v52(2): 307-327
Published as Bordo, Michael D. and Ronald MacDonald. "The Inter-war Gold Exchange Standard: Credibility and Monetary Independence." Journal of International Money and Finance, February 2003, 22(1): 1-32

Downloads: (external link)
http://www.nber.org/papers/w8429.pdf (application/pdf)

Related works:
Journal Article: The inter-war gold exchange standard: credibility and monetary independence (2003)
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:nbr:nberwo:8429

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w8429

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().