Currency crises in Europe and Mexico during the 1990s provided
stark reminders of the importance and the fragility of
international financial markets. These experiences led some
commentators to conclude that open international capital markets
are incompatible with financial stability. But the pre-1914 gold
standard is an obvious challenge to the notion that open capital
markets are sources of instability. To deepen our understanding of
how this system worked, this volume draws together recent research
on the gold standard. Theoretical models are used to guide
qualitative discussions of historical experience, while econometric
methods are used to help the historical data speak clearly. The
result is an overview of the gold standard, a survey of the
relevant applied research in international macroeconomics, and a
demonstration of how the past can help to inform the present.
General
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