The Stability of the Interwar Gold Exchange Standard: Did Politics Matter?

  title={The Stability of the Interwar Gold Exchange Standard: Did Politics Matter?},
  author={Kirsten Wandschneider},
  journal={The Journal of Economic History},
  pages={151 - 181}
  • K. Wandschneider
  • Published 1 March 2008
  • Economics, History
  • The Journal of Economic History
Economic historians have devoted enormous attention to the collapse of the interwar gold standard. This article proposes a discrete time duration model (using a panel data set of 24 countries for 1928–1936) to analyze how economic and political indicators affected a country's term on the gold standard. High per capita income, international creditor status, and prior hyperinflation increased the probability of continuation. In contrast, democratic regimes left early. Unemployment, sterling group… 
Inequality and the Interwar Gold Standard
  • Weinan Yan
  • Economics, History
    Eastern Economic Journal
  • 2021
Many economic historians have argued that adherence to the gold standard was an important obstacle to recovery from the Great Depression. It is therefore important to understand the factors that
International Monetary Regimes: The Interwar Gold Exchange Standard
Historical accounts of the international monetary system generally oppose the classical gold standard of 1880-1914 and its interwar successor of 1925-1931. Whilst the pre-WW1 gold standard is usually
Currency crisis and collapse in interwar Greece: predicament or policy failure?
In 1928 Greece viewed the anchoring to the Gold Exchange Standard as the imperative choice in order to implant financial credibility and attract foreign capital. After the British pound exited the
European Historical Economics Society, 8th Conference
The paper reviews the collapse of the interwar gold standard from a core-periphery perspective by applying an ordered probit model. This method allows us not only to identify the factors leading
Breaking the Fetters: Why Did Countries Exit the Interwar Gold Standard?
The slow demise of the interwar gold standard figures prominently in explanations of the spread and depth of the Great Depression. The reluctance of some countries to shed their golden fetters is
Shooting on a Moving Target: Explaining European Bank Rates during the Interwar Period
This paper describes the monetary policy response of countries during the inter-war period. How did central banks react to the Great Depression? How did countries balance the externals demands of the
Explaining Europe ’ s Exit from Gold , January 1928-December 19361
The paper examines the timing of exit from the interwar gold-exchange standard for a panel of European countries, based on monthly data over the period January 1928 December 1936. I show that exit
The Slide to Protectionism in the Great Depression: Who Succumbed and Why?
The Great Depression was marked by a severe outbreak of protectionist trade policies. But contrary to the presumption that all countries scrambled to raise trade barriers, there was substantial
Original Sin and the Great Depression
Was foreign currency denominated debt a determinant of exchange rate and monetary policy during the Great Depression? Policy makers of the day thought so. High-frequency bond price data show
Do Old Habits Die Hard? Central Banks and the Bretton Woods Gold Puzzle


Who Adjusts? Domestic Sources of Foreign Economic Policy during the Interwar Years
This study presents a fresh view of why governments decided to abide by or defect from the gold standard during the 1920s and 1930s. Previous studies of the spread of the Great Depression have
Money, Capital Mobility, and Trade : Essays in Honor of Robert A. Mundell
Written by Robert Mundell's academic descendants, as well as other leading economists and scholars, the essays in this volume reflect Mundell's broad influence on modern open-economy macroeconomics.
Monetary Sovereignty, Exchange Rates, and Capital Controls: The Trilemma in the Interwar Period
The interwar period was marked by the end of the classical gold standard regime and new levels of macroeconomic disorder in the world economy. The interwar disorder often is linked to policies
The classical gold standard occupies an almost mystical position in the literature of international finance. In popular accounts the gold standard is portrayed as a remarkably durable and efficient
A New World Order: Explaining the Emergence of the Classical Gold Standard
The classical gold standard only gradually became an international monetary regime after 1870. This paper provides a cross-country analysis of why countries adopted when they did. I use duration
Latin America and the World Economy since 1800
The 15 essays in this volume apply the methods of the new economic history to the history of the Latin American economies since 1800. The authors combine the historian's sensitivity to context and
Economic and Political Reactions to the World Economic Crisis of the 1930s in Six European Countries
In this article economic and political responses to the Depression in Germany, Austria, Belgium, the Netherlands, France, and Britain are analyzed. Each country applied a specific mixture of
Rulers of the Game: Central Bank Independence During the Interwar Years
Central bank independence is associated with restrictive monetary choices that can be deflationary within fixed exchange-rate regimes. Because central banks act to counteract domestic inflation, they