Paolo Mauro, Nathan Sussman, and Yishay Yafeh
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199272693
- eISBN:
- 9780191603488
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199272697.003.0003
- Subject:
- Economics and Finance, Financial Economics
This chapter conducts a case study of spreads on sovereign bonds issued by Japan and Russia, two countries that introduced the gold standard in 1897. It is shown that Japanese spreads were relatively ...
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This chapter conducts a case study of spreads on sovereign bonds issued by Japan and Russia, two countries that introduced the gold standard in 1897. It is shown that Japanese spreads were relatively unaffected by the establishment of some of Japan’s most important institutions, including the promulgation of the Meiji Constitution in 1889, which explicitly guaranteed the protection of property rights and the rule of law. The only institutional reform that led to an immediate improvement in Japan’s ‘credit rating’ was the adoption of the gold standard. Japan’s war with Russia (1904-1905) and its successful outcome had a far more visible impact on spreads than most institutional reforms. The chapter also conducts a case study of the British-Dutch interest differential around the Glorious Revolution. It shows that developments regarding war and peace had a far greater impact on borrowing costs than institutional reforms.Less
This chapter conducts a case study of spreads on sovereign bonds issued by Japan and Russia, two countries that introduced the gold standard in 1897. It is shown that Japanese spreads were relatively unaffected by the establishment of some of Japan’s most important institutions, including the promulgation of the Meiji Constitution in 1889, which explicitly guaranteed the protection of property rights and the rule of law. The only institutional reform that led to an immediate improvement in Japan’s ‘credit rating’ was the adoption of the gold standard. Japan’s war with Russia (1904-1905) and its successful outcome had a far more visible impact on spreads than most institutional reforms. The chapter also conducts a case study of the British-Dutch interest differential around the Glorious Revolution. It shows that developments regarding war and peace had a far greater impact on borrowing costs than institutional reforms.
Mark S. Morrisson
- Published in print:
- 2007
- Published Online:
- May 2007
- ISBN:
- 9780195306965
- eISBN:
- 9780199785414
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195306965.003.0004
- Subject:
- Religion, Theology
This chapter describes a “transmutational gold rush” which happened between 1904 and the 1920s. Academic chemists, working in an alchemy revival, attempted to transmute elements, even to make gold. ...
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This chapter describes a “transmutational gold rush” which happened between 1904 and the 1920s. Academic chemists, working in an alchemy revival, attempted to transmute elements, even to make gold. By the 1920s, these blendings of atomic science and occult alchemy begin to affect other domains of knowledge, particularly economics and monetary policy, eventually inspiring concerns about the gold standard in the 1920s and 1930s.Less
This chapter describes a “transmutational gold rush” which happened between 1904 and the 1920s. Academic chemists, working in an alchemy revival, attempted to transmute elements, even to make gold. By the 1920s, these blendings of atomic science and occult alchemy begin to affect other domains of knowledge, particularly economics and monetary policy, eventually inspiring concerns about the gold standard in the 1920s and 1930s.
Mark S. Morrisson
- Published in print:
- 2007
- Published Online:
- May 2007
- ISBN:
- 9780195306965
- eISBN:
- 9780199785414
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195306965.003.0005
- Subject:
- Religion, Theology
This chapter explores the different cultural consequences of modern alchemy in relationship to monetary anxieties during the Depression. In particular, it narrates how the idea of modern alchemy ...
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This chapter explores the different cultural consequences of modern alchemy in relationship to monetary anxieties during the Depression. In particular, it narrates how the idea of modern alchemy intensified questioning of the gold standard and of the moral foundation of scientific aspiration.Less
This chapter explores the different cultural consequences of modern alchemy in relationship to monetary anxieties during the Depression. In particular, it narrates how the idea of modern alchemy intensified questioning of the gold standard and of the moral foundation of scientific aspiration.
Marc Flandreau
- Published in print:
- 2004
- Published Online:
- August 2004
- ISBN:
- 9780199257867
- eISBN:
- 9780191601279
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199257868.001.0001
- Subject:
- Economics and Finance, Economic History
The Glitter of Gold studies the so far unexplored operation of the international monetary system that prevailed before the emergence of the international gold standard in 1873. Conventional wisdom ...
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The Glitter of Gold studies the so far unexplored operation of the international monetary system that prevailed before the emergence of the international gold standard in 1873. Conventional wisdom has it that the emergence of gold as a global anchor was both an inescapable and a desirable evolution, given the exchange rate stability it provided and Britain's predominance. The book draws on a wealth of archival and new statistical evidence to demonstrate that global exchange rate stability always prevailed before the making of the gold standard. This was despite the heterogeneity among national monetary regimes based on gold, silver, or both. The reason for the stability before the establishment of the gold standard is France's bimetallic system. France, by being in a position to trade gold for silver, and vice-versa, effectively pegged the exchange rate between gold and silver at its legal ratio of 15.5 :1. This system proved remarkably stable and flexible, thanks to a global network of foreign exchange and precious metal arbitrage, operated from Paris and London by leading international banks - most prominently, the Rothschilds. Contrary to the received wisdom, the controversies of the 1860s on the “double standard” signalled both the advantages of this system and the considerable costs that large countries would have to pay if the world wanted to shift to a single standard. It took a series of political shocks, misguided decisions, and international rivalries to put an end to bimetallism in the early 1870s.Less
The Glitter of Gold studies the so far unexplored operation of the international monetary system that prevailed before the emergence of the international gold standard in 1873. Conventional wisdom has it that the emergence of gold as a global anchor was both an inescapable and a desirable evolution, given the exchange rate stability it provided and Britain's predominance. The book draws on a wealth of archival and new statistical evidence to demonstrate that global exchange rate stability always prevailed before the making of the gold standard. This was despite the heterogeneity among national monetary regimes based on gold, silver, or both. The reason for the stability before the establishment of the gold standard is France's bimetallic system. France, by being in a position to trade gold for silver, and vice-versa, effectively pegged the exchange rate between gold and silver at its legal ratio of 15.5 :1. This system proved remarkably stable and flexible, thanks to a global network of foreign exchange and precious metal arbitrage, operated from Paris and London by leading international banks - most prominently, the Rothschilds. Contrary to the received wisdom, the controversies of the 1860s on the “double standard” signalled both the advantages of this system and the considerable costs that large countries would have to pay if the world wanted to shift to a single standard. It took a series of political shocks, misguided decisions, and international rivalries to put an end to bimetallism in the early 1870s.
T. P. WISEMAN
- Published in print:
- 2007
- Published Online:
- January 2012
- ISBN:
- 9780197264010
- eISBN:
- 9780191734946
- Item type:
- chapter
- Publisher:
- British Academy
- DOI:
- 10.5871/bacad/9780197264010.003.0006
- Subject:
- Religion, Biblical Studies
This chapter examines the chronological range of Greco-Roman history and the nature of the main narrative sources. The discussion begins about 1200 BCE, with the end of the Bronze Age palace culture, ...
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This chapter examines the chronological range of Greco-Roman history and the nature of the main narrative sources. The discussion begins about 1200 BCE, with the end of the Bronze Age palace culture, conventionally called Mycenaean. The destruction of the palace centres – at Knossos, Mycenae, Pylos, and Thebes – was responsible for preserving the ‘Linear B’ tablets, which form the earliest evidence for the Greek language. By the sixth century, Greek city-states were established widely round the Mediterranean and the Black Sea. This is the time of what is sometimes called ‘the Greek miracle’, the origin of philosophy and science as well as historiography. The chapter draws attention to three archaeological discoveries and the way their evidential value has been assessed: a gold mask, discovered in 1876 in the first of the ‘shaft graves’ at Mycenae, the so-called tomb of Agamemnon; an artefact discovered in 1977 by the Dutch archaeological team excavating the temple of Matuta at the Latin town of Satricum; and a gold bulb, or locket, discovered in 1794.Less
This chapter examines the chronological range of Greco-Roman history and the nature of the main narrative sources. The discussion begins about 1200 BCE, with the end of the Bronze Age palace culture, conventionally called Mycenaean. The destruction of the palace centres – at Knossos, Mycenae, Pylos, and Thebes – was responsible for preserving the ‘Linear B’ tablets, which form the earliest evidence for the Greek language. By the sixth century, Greek city-states were established widely round the Mediterranean and the Black Sea. This is the time of what is sometimes called ‘the Greek miracle’, the origin of philosophy and science as well as historiography. The chapter draws attention to three archaeological discoveries and the way their evidential value has been assessed: a gold mask, discovered in 1876 in the first of the ‘shaft graves’ at Mycenae, the so-called tomb of Agamemnon; an artefact discovered in 1977 by the Dutch archaeological team excavating the temple of Matuta at the Latin town of Satricum; and a gold bulb, or locket, discovered in 1794.
Barry Eichengreen
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780195101133
- eISBN:
- 9780199869626
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195101138.003.0009
- Subject:
- Economics and Finance, Economic History
This is the third of three chapters that consider the operation of the reconstructed gold standard system following World War I. It describes the desperate attempts of policy makers to defend the ...
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This is the third of three chapters that consider the operation of the reconstructed gold standard system following World War I. It describes the desperate attempts of policy makers to defend the gold standard and analyzes their role in aggravating the Great Depression. At the same time, it suggests that the collapse of the system provided new opportunities for constructive action. The Chinese character for ‘crisis’ combines the symbols for ‘danger’ and ‘opportunity’, and the point made in this chapter (Crisis and Opportunity) is much the same. The different sections of the chapter look at the links between domestic and international financial systems, the Austrian crisis of 1931 (which led, in effect, to it no longer being part of the gold standard system), the spread of the crisis to other countries, the abandonment of the gold standard by Britain, and the implications – which were that the stage had now been set for the collapse of the gold standard system.Less
This is the third of three chapters that consider the operation of the reconstructed gold standard system following World War I. It describes the desperate attempts of policy makers to defend the gold standard and analyzes their role in aggravating the Great Depression. At the same time, it suggests that the collapse of the system provided new opportunities for constructive action. The Chinese character for ‘crisis’ combines the symbols for ‘danger’ and ‘opportunity’, and the point made in this chapter (Crisis and Opportunity) is much the same. The different sections of the chapter look at the links between domestic and international financial systems, the Austrian crisis of 1931 (which led, in effect, to it no longer being part of the gold standard system), the spread of the crisis to other countries, the abandonment of the gold standard by Britain, and the implications – which were that the stage had now been set for the collapse of the gold standard system.
Marc Flandreau
- Published in print:
- 2004
- Published Online:
- August 2004
- ISBN:
- 9780199257867
- eISBN:
- 9780191601279
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199257868.003.0004
- Subject:
- Economics and Finance, Economic History
Chapter 3 provides an analysis of international arbitrage focusing on the exchange market between Paris and London. Resting on a new methodology to study exchange rate relations, this chapter shows ...
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Chapter 3 provides an analysis of international arbitrage focusing on the exchange market between Paris and London. Resting on a new methodology to study exchange rate relations, this chapter shows that exchange rates between gold and bimetallic nations were heavily influenced by bullion discoveries.Less
Chapter 3 provides an analysis of international arbitrage focusing on the exchange market between Paris and London. Resting on a new methodology to study exchange rate relations, this chapter shows that exchange rates between gold and bimetallic nations were heavily influenced by bullion discoveries.
Niall Ferguson
- Published in print:
- 2005
- Published Online:
- September 2007
- ISBN:
- 9780199269495
- eISBN:
- 9780191710162
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199269495.003.0004
- Subject:
- Business and Management, Finance, Accounting, and Banking
This chapter seeks to reassert the importance of Britain's formal empire in the ‘unofficial mind’ of the late 19th-century City of London, suggesting that even if they did not initially see ...
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This chapter seeks to reassert the importance of Britain's formal empire in the ‘unofficial mind’ of the late 19th-century City of London, suggesting that even if they did not initially see independent gold standard countries as more risky than colonies, investors learned through experience that they were. The reality was that membership of the British Empire was a more reliable ‘no default’ guarantee than adherence to the gold standard by itself. The political upheavals of the period before, during, and after the First World War revealed the limits of commitments to gold in the face of war and revolution. By the 1920s, bitter experience combined with a new regulatory environment to increase substantially the proportion of overseas investment going to the Empire.Less
This chapter seeks to reassert the importance of Britain's formal empire in the ‘unofficial mind’ of the late 19th-century City of London, suggesting that even if they did not initially see independent gold standard countries as more risky than colonies, investors learned through experience that they were. The reality was that membership of the British Empire was a more reliable ‘no default’ guarantee than adherence to the gold standard by itself. The political upheavals of the period before, during, and after the First World War revealed the limits of commitments to gold in the face of war and revolution. By the 1920s, bitter experience combined with a new regulatory environment to increase substantially the proportion of overseas investment going to the Empire.
Barry Eichengreen
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780195101133
- eISBN:
- 9780199869626
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195101138.003.0002
- Subject:
- Economics and Finance, Economic History
This book is organized chronologically to convey a sense of how events appeared to those who made the critical decisions that led toward the Great Depression. Chapter 2 begins with the prewar gold ...
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This book is organized chronologically to convey a sense of how events appeared to those who made the critical decisions that led toward the Great Depression. Chapter 2 begins with the prewar gold standard. Besides documenting the role of credibility and international cooperation in the operation of the system, it highlights differences in the functioning of the gold standard at the center (in Britain, France and Germany) and the periphery (North and South America, Australia and New Zealand). It is shown that the smooth operation of the prewar system hinged on a particular conjuncture of economic and political forces – forces that were in decline even before the outbreak of World War I. The chapter finishes by explaining why interwar observers failed to appreciate the tenuous basis of the prewar system.Less
This book is organized chronologically to convey a sense of how events appeared to those who made the critical decisions that led toward the Great Depression. Chapter 2 begins with the prewar gold standard. Besides documenting the role of credibility and international cooperation in the operation of the system, it highlights differences in the functioning of the gold standard at the center (in Britain, France and Germany) and the periphery (North and South America, Australia and New Zealand). It is shown that the smooth operation of the prewar system hinged on a particular conjuncture of economic and political forces – forces that were in decline even before the outbreak of World War I. The chapter finishes by explaining why interwar observers failed to appreciate the tenuous basis of the prewar system.
Barry Eichengreen
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780195101133
- eISBN:
- 9780199869626
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195101138.003.0008
- Subject:
- Economics and Finance, Economic History
This is the second of three chapters that consider the operation of the reconstructed gold standard system following World War I. It analyzes the role of the gold standard in the onset of the Great ...
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This is the second of three chapters that consider the operation of the reconstructed gold standard system following World War I. It analyzes the role of the gold standard in the onset of the Great Depression and shows how, in turn, the slump undercut the foundations of the gold standard system. The first section of the chapter looks at the setting, and the second at the three options available to heavily indebted countries: the orthodox response – to boost exports and limit imports, cut public spending, raise taxes (especially import duties), and apply export bounties; action to suspend export debt service to devote foreign exchange to essential imports; and action to suspend the gold standard. The next three sections look at Australia as a prototypical primary producer – the first country to suspend the gold standard, the suspension of the gold standard by Argentina, Brazil, and Canada, and the situation in Germany. The last two sections discuss the acceleration into Depression, the US policy response, and European repercussions.Less
This is the second of three chapters that consider the operation of the reconstructed gold standard system following World War I. It analyzes the role of the gold standard in the onset of the Great Depression and shows how, in turn, the slump undercut the foundations of the gold standard system. The first section of the chapter looks at the setting, and the second at the three options available to heavily indebted countries: the orthodox response – to boost exports and limit imports, cut public spending, raise taxes (especially import duties), and apply export bounties; action to suspend export debt service to devote foreign exchange to essential imports; and action to suspend the gold standard. The next three sections look at Australia as a prototypical primary producer – the first country to suspend the gold standard, the suspension of the gold standard by Argentina, Brazil, and Canada, and the situation in Germany. The last two sections discuss the acceleration into Depression, the US policy response, and European repercussions.
Michael Ward
- Published in print:
- 2008
- Published Online:
- January 2008
- ISBN:
- 9780195313871
- eISBN:
- 9780199871964
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195313871.003.0005
- Subject:
- Religion, Religion and Literature
Sol, the most metallurgical of the planets, in Lewis's scholarship, poetry and That Hideous Strength. Sol's association with gold, liberality, and light symbolizing philosophical and theological ...
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Sol, the most metallurgical of the planets, in Lewis's scholarship, poetry and That Hideous Strength. Sol's association with gold, liberality, and light symbolizing philosophical and theological wisdom. The donegality of The Voyage of the ‘Dawn Treader’, the story of a journey towards the rising sun. Apollo Sauroctonus, the lizard‐slaying sun‐god. A transcendent and universal Christology.Less
Sol, the most metallurgical of the planets, in Lewis's scholarship, poetry and That Hideous Strength. Sol's association with gold, liberality, and light symbolizing philosophical and theological wisdom. The donegality of The Voyage of the ‘Dawn Treader’, the story of a journey towards the rising sun. Apollo Sauroctonus, the lizard‐slaying sun‐god. A transcendent and universal Christology.
Barry Eichengreen
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780195101133
- eISBN:
- 9780199869626
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195101138.003.0010
- Subject:
- Economics and Finance, Economic History
This chapter traces the consequences of the disintegration of the gold standard system, contrasting economic recovery in countries that jettisoned gold with continued depression in countries that ...
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This chapter traces the consequences of the disintegration of the gold standard system, contrasting economic recovery in countries that jettisoned gold with continued depression in countries that retained it. An attempt is made to account for their respective policy decisions. The case of the USA emerges as something of an anomaly, and is addressed further in the next chapter. The first section of the chapter looks at the new international economic environment following sterling depreciation and the abandonment of the gold standard by many other countries from 1932 onward. The remaining sections look at the pressure on the dollar, the spread of devaluation, the initial responses to abandonment of the gold standard in the countries concerned, and the responses of the remaining ‘gold bloc’ countries.Less
This chapter traces the consequences of the disintegration of the gold standard system, contrasting economic recovery in countries that jettisoned gold with continued depression in countries that retained it. An attempt is made to account for their respective policy decisions. The case of the USA emerges as something of an anomaly, and is addressed further in the next chapter. The first section of the chapter looks at the new international economic environment following sterling depreciation and the abandonment of the gold standard by many other countries from 1932 onward. The remaining sections look at the pressure on the dollar, the spread of devaluation, the initial responses to abandonment of the gold standard in the countries concerned, and the responses of the remaining ‘gold bloc’ countries.
Barry Eichengreen and Peter Temin
- Published in print:
- 2006
- Published Online:
- January 2012
- ISBN:
- 9780197263471
- eISBN:
- 9780191734786
- Item type:
- chapter
- Publisher:
- British Academy
- DOI:
- 10.5871/bacad/9780197263471.003.0012
- Subject:
- Economics and Finance, Economic History
The Great Depression is one of those seminal events in the modern world economy on which policy-makers and market participants rely when formulating their conceptions of how market economies behave. ...
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The Great Depression is one of those seminal events in the modern world economy on which policy-makers and market participants rely when formulating their conceptions of how market economies behave. This chapter examines the international monetary policy formation during the Great Depression. It argues that the ideology of the gold standard led policy-makers to take actions that accentuated economic distress in the 1930s.Less
The Great Depression is one of those seminal events in the modern world economy on which policy-makers and market participants rely when formulating their conceptions of how market economies behave. This chapter examines the international monetary policy formation during the Great Depression. It argues that the ideology of the gold standard led policy-makers to take actions that accentuated economic distress in the 1930s.
Kathryn C. Lavelle
- Published in print:
- 2011
- Published Online:
- January 2012
- ISBN:
- 9780199765348
- eISBN:
- 9780199918959
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199765348.003.0004
- Subject:
- Political Science, International Relations and Politics
This chapter examines the development stage of the relationship between the IMF and World Bank, when the work of both converged on lending in developing countries. The primary exogenous shock came ...
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This chapter examines the development stage of the relationship between the IMF and World Bank, when the work of both converged on lending in developing countries. The primary exogenous shock came from the end of the Vietnam War and balance-of-payments deficits, culminating with the end of fixed parity in the IMF. Considerable endogenous change also occurred, chiefly from the “sunshine laws” that opened an array of government activities to public scrutiny. The chapter argues that this combination facilitated new forms of congressional advocacy toward the Bretton Woods institutions because more information on their activities became available as public interest advocacy expanded across American politics. Using amendments to authorization and appropriations bills, groups sought to direct lending of the World Bank, in particular, by earmarks on funds away from countries accused of human rights abuses. Other amendments sought to prevent American participation in the Witteveen Facility and created the Gold Commission. Also during this stage, Congress asserted itself vis-à-vis the executive branch, through extensive negotiations connected to the creation of gold sales to finance the IMF Trust Fund and the Jamaica Accord. While many of the efforts were unsuccessful, they secured future channels of political influence.Less
This chapter examines the development stage of the relationship between the IMF and World Bank, when the work of both converged on lending in developing countries. The primary exogenous shock came from the end of the Vietnam War and balance-of-payments deficits, culminating with the end of fixed parity in the IMF. Considerable endogenous change also occurred, chiefly from the “sunshine laws” that opened an array of government activities to public scrutiny. The chapter argues that this combination facilitated new forms of congressional advocacy toward the Bretton Woods institutions because more information on their activities became available as public interest advocacy expanded across American politics. Using amendments to authorization and appropriations bills, groups sought to direct lending of the World Bank, in particular, by earmarks on funds away from countries accused of human rights abuses. Other amendments sought to prevent American participation in the Witteveen Facility and created the Gold Commission. Also during this stage, Congress asserted itself vis-à-vis the executive branch, through extensive negotiations connected to the creation of gold sales to finance the IMF Trust Fund and the Jamaica Accord. While many of the efforts were unsuccessful, they secured future channels of political influence.
Marc Flandreau
- Published in print:
- 2004
- Published Online:
- August 2004
- ISBN:
- 9780199257867
- eISBN:
- 9780191601279
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199257868.003.0006
- Subject:
- Economics and Finance, Economic History
Chapter 5 studies the rules of bimetallic game. It discusses the constraints and opportunities of bimetallic regimes for monetary authorities. It shows that, contrary to a widespread view, a ...
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Chapter 5 studies the rules of bimetallic game. It discusses the constraints and opportunities of bimetallic regimes for monetary authorities. It shows that, contrary to a widespread view, a bimetallic system does not provide fundamentally different opportunities than a monometallic one, and thus places fairly tight constraints upon monetary authorities. In fact, it is during the years of bimetallism that a high degree of European monetary integration was first achieved.Less
Chapter 5 studies the rules of bimetallic game. It discusses the constraints and opportunities of bimetallic regimes for monetary authorities. It shows that, contrary to a widespread view, a bimetallic system does not provide fundamentally different opportunities than a monometallic one, and thus places fairly tight constraints upon monetary authorities. In fact, it is during the years of bimetallism that a high degree of European monetary integration was first achieved.
Barry Eichengreen
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780195101133
- eISBN:
- 9780199869626
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195101138.003.0007
- Subject:
- Economics and Finance, Economic History
This is the first of three chapters that consider the operation of the reconstructed gold standard system following World War I; it documents the decline in its credibility and in international ...
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This is the first of three chapters that consider the operation of the reconstructed gold standard system following World War I; it documents the decline in its credibility and in international cooperation over it, in comparison with the prewar era. Britain joined the USA on the gold standard in April 1925, and by the end of that year, nearly three dozen countries had effectively restored convertibility; the French franc was stabilized de facto in 1926, the Italian lira in 1927, and by the beginning of 1928, the reconstruction of the gold standard system was essentially complete. However, from the outset, it was apparent that the new gold standard was not having the beneficial effects so widely envisaged; the most glaring problem was its failure to maintain price stability, and the adjustment mechanism did not succeed in swiftly eliminating balance‐of‐payments surpluses and deficits. The obvious solution was international cooperation, but the requisite level was not forthcoming. The different sections of the chapter look at the form of the reconstructed system, problems of its operation – liquidity and adjustment, the role of international cooperation, monetary policy in 1927, 1928–1929, and impediments to cooperation.Less
This is the first of three chapters that consider the operation of the reconstructed gold standard system following World War I; it documents the decline in its credibility and in international cooperation over it, in comparison with the prewar era. Britain joined the USA on the gold standard in April 1925, and by the end of that year, nearly three dozen countries had effectively restored convertibility; the French franc was stabilized de facto in 1926, the Italian lira in 1927, and by the beginning of 1928, the reconstruction of the gold standard system was essentially complete. However, from the outset, it was apparent that the new gold standard was not having the beneficial effects so widely envisaged; the most glaring problem was its failure to maintain price stability, and the adjustment mechanism did not succeed in swiftly eliminating balance‐of‐payments surpluses and deficits. The obvious solution was international cooperation, but the requisite level was not forthcoming. The different sections of the chapter look at the form of the reconstructed system, problems of its operation – liquidity and adjustment, the role of international cooperation, monetary policy in 1927, 1928–1929, and impediments to cooperation.
Barry Eichengreen
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780195101133
- eISBN:
- 9780199869626
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195101138.003.0011
- Subject:
- Economics and Finance, Economic History
This chapter analyzes the critical period in the spring of 1933 when American policy was reversed and the dollar devalued. Roosevelt's abandonment of gold coincided with the World Economic ...
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This chapter analyzes the critical period in the spring of 1933 when American policy was reversed and the dollar devalued. Roosevelt's abandonment of gold coincided with the World Economic Conference, which was held in London in June 1933, in a last attempt to respond cooperatively to the economic crisis. The connections are traced between the dollar's depreciation and the London Conference and an explanation given of why the latter failed. The different sections of the chapter discuss the background to the negotiations, the conference itself, the international monetary repercussions, and the impact of devaluation of the dollar.Less
This chapter analyzes the critical period in the spring of 1933 when American policy was reversed and the dollar devalued. Roosevelt's abandonment of gold coincided with the World Economic Conference, which was held in London in June 1933, in a last attempt to respond cooperatively to the economic crisis. The connections are traced between the dollar's depreciation and the London Conference and an explanation given of why the latter failed. The different sections of the chapter discuss the background to the negotiations, the conference itself, the international monetary repercussions, and the impact of devaluation of the dollar.
Barry Eichengreen
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780195101133
- eISBN:
- 9780199869626
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195101138.003.0012
- Subject:
- Economics and Finance, Economic History
By 1934, it was impossible to ignore the contrast between the persistence of depression in gold standard countries and the acceleration of recovery in the rest of the world; the continued allegiance ...
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By 1934, it was impossible to ignore the contrast between the persistence of depression in gold standard countries and the acceleration of recovery in the rest of the world; the continued allegiance to gold by several European countries, led by France, has consequently been regarded as an enigma. This chapter shows how domestic politics combined with collective memory of inflationary chaos in the 1920s to sustain resistance to currency depreciation. Indeed, inflation anxiety in the gold bloc was not entirely unfounded, and sometimes it proved self‐fulfilling. When currency depreciation finally came to France in 1936, it was accompanied by inflation and social turmoil, but not by the beneficial effects evident in other countries. Here, as in the rest of the book, historical and political factors, not just economics, bear the burden of explanation.Less
By 1934, it was impossible to ignore the contrast between the persistence of depression in gold standard countries and the acceleration of recovery in the rest of the world; the continued allegiance to gold by several European countries, led by France, has consequently been regarded as an enigma. This chapter shows how domestic politics combined with collective memory of inflationary chaos in the 1920s to sustain resistance to currency depreciation. Indeed, inflation anxiety in the gold bloc was not entirely unfounded, and sometimes it proved self‐fulfilling. When currency depreciation finally came to France in 1936, it was accompanied by inflation and social turmoil, but not by the beneficial effects evident in other countries. Here, as in the rest of the book, historical and political factors, not just economics, bear the burden of explanation.
Jean Andreau
- Published in print:
- 2008
- Published Online:
- May 2008
- ISBN:
- 9780199233359
- eISBN:
- 9780191716348
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199233359.003.0011
- Subject:
- Classical Studies, European History: BCE to 500CE
This chapter examines monetization in early imperial Italy. Evidence from Vesuvian cities is compared with evidence from other sites. It is shown that in Graeco-Roman antiquity, coins were by far the ...
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This chapter examines monetization in early imperial Italy. Evidence from Vesuvian cities is compared with evidence from other sites. It is shown that in Graeco-Roman antiquity, coins were by far the common means of payment, but in the cities where there were bankers, bank accounts had a role to play. Coinage was not the only way to keep valuables. The evidence from the Vesuvian cities shows that we must recognize the importance of jewellery and precious metals, of gold and silver jewels, and of silver plate.Less
This chapter examines monetization in early imperial Italy. Evidence from Vesuvian cities is compared with evidence from other sites. It is shown that in Graeco-Roman antiquity, coins were by far the common means of payment, but in the cities where there were bankers, bank accounts had a role to play. Coinage was not the only way to keep valuables. The evidence from the Vesuvian cities shows that we must recognize the importance of jewellery and precious metals, of gold and silver jewels, and of silver plate.
R. Allen Lott
- Published in print:
- 2003
- Published Online:
- May 2008
- ISBN:
- 9780195148831
- eISBN:
- 9780199869695
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195148831.003.0007
- Subject:
- Music, History, Western
While in the United States, Henri Herz actively established agents to sell his own pianos and explored the possibilities of building a factory, concert hall, and conservatory, none of which came to ...
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While in the United States, Henri Herz actively established agents to sell his own pianos and explored the possibilities of building a factory, concert hall, and conservatory, none of which came to fruition. Herz's claim that Americans covered the legs of their pianos because of their prudishness is not true; it was a means to protect them. During the 1848-9 season, Herz toured with the Dutch violinist Frans Coenen (1826-1904) and an Italian opera troupe. After appearances in Mexico, Herz gave concerts in San Francisco and Sacramento, California, in 1850 during the height of the gold rush. Herz's American tour reflected a more businesslike approach to musical management under Bernard Ullman, and included almost two hundred concerts in at least fifty-eight cities. His simple but elegant stage manners and his graceful music charmed the American public.Less
While in the United States, Henri Herz actively established agents to sell his own pianos and explored the possibilities of building a factory, concert hall, and conservatory, none of which came to fruition. Herz's claim that Americans covered the legs of their pianos because of their prudishness is not true; it was a means to protect them. During the 1848-9 season, Herz toured with the Dutch violinist Frans Coenen (1826-1904) and an Italian opera troupe. After appearances in Mexico, Herz gave concerts in San Francisco and Sacramento, California, in 1850 during the height of the gold rush. Herz's American tour reflected a more businesslike approach to musical management under Bernard Ullman, and included almost two hundred concerts in at least fifty-eight cities. His simple but elegant stage manners and his graceful music charmed the American public.
