We introduce a new weekly database of spot and forward US-UK exchange rates as well as interest rates to examine the integration of forward exchange markets during the classical gold standard period (1880-1914). Using threshold autoregressions (TAR), we estimate the transactions cost band of...

Some previous research has indicated that the classical gold standard led to greater price level convergence among member countries than would be observed in later Bretton Woods and floating exchange rate regimes. This paper examines the subject of price convergence under the gold standard with...

We introduce a new weekly database of spot and forward US-UK exchange rates as well as interest rates to examine the integration of forward exchange markets during the classical gold standard period (1880-1914). Using threshold autoregressions (TAR), we estimate the transactions cost band of...

Adherence to the classical gold standard entailed nominal exchange rate rigidity between member countries. A failure of price levels to co-move between members would thus lead to real exchange rate misalignment, with potential trade imbalances and financial crises following. We examine inflation...