The paper studies an idealized gold standard in a two-country setting. Unless national policies for domestic credit … expansion (dce) are flexible enough to offset the effect of money demand shocks on international gold reserves, the gold … respond to these shocks, the public debt is likely to rise (or fall) to unsustainable levels. The idealized gold standard …

, attributing the unusual extent of capital flows prior to 1914 to the operation of the international gold standard. The second …

conventional wisdom concerning the limited credibility of the interwar gold standard. Before 1914, gold standard adherence … resuming prewar gold parities was insufficient to secure such benefits. Countries that devalued before resumption were treated …

exchange rates during the classical gold standard era. Theory suggests that a completely credible and permanent commitment to … join the gold standard would have zero currency risk or no expectation of devaluation. We find that, even five years after … a typical emerging-market country joined the gold standard, the currency risk premium averaged at least 220 basis points …

classical gold standard is similarly ascribed to Britain's dominance of 19th-century financial markets. In contrast, the … instability of the interwar gold-exchange standard is attributed to the absence of a hegemonic power. This paper assesses the … empirical vantage points. Theory is of some help in understanding the relatively smooth operation of the classical gold standard …

the classical gold standard. The international gold-based fixed exchange rate regime that surfaced during the 1870s has … `transaction costs' and `political economy' theories. Finally, we provide an alternative explanation of the emergence of the gold … standard. Our conclusion is twofold. First, we argue that the making of the gold standard was very much the result of path …

Did adoption of the gold standard exacerbate or diminish macroeconomic volatility? Supporters thought so, critics … thought not, and theory offers ambiguous messages. A hard exchange-rate regime such as the gold standard might limit monetary … trade volatility from the late nineteenth and early twentieth century exposes a dramatic change. The classical gold standard …

This paper surveys studies of the classical Gold Standard published subsequent to Alec Ford's The Gold Standard 1880 …-flow interactions in bond markets. The paper then addresses how the Gold Standard worked. A key element of my explanation for the … stability of the Gold Standard is the credibility of the official commitment to gold. Knowing that policy-makers would intervene …

This paper examines some popular explanations for the smooth operation of the pre-1914 gold standard. We find that the … the gold standard system, but no evidence that this success also reflected relatively small underlying disturbances …