Currency Convertibility: The Gold Standard and Beyond

By Jorge Braga De Macedo; Barry Eichengreen et al. | Go to book overview

4

SHORT-TERM CAPITAL MOVEMENTS UNDER THE GOLD STANDARD

Marcello de Cecco

Jacob Viner stated in 1937 that international capital movements had not yet found their historian. Things have progressed since then, but not substantially. In particular, there do not seem to have appeared, since the publication of Arthur Bloomfield's Princeton paper, 'Short-term capital movements under the pre-1914 gold standard' many contributions which try to shed more light on the subject, on the basis of research conducted in the archives of banks and central banks.

By default, therefore, we seem to remain inclined to accept the version of the story of how the pre-1914 gold standard worked which assigns short-term capital movements a largely equilibrating role, and sees the central banks of the core countries intent in following the Bank of England, the conductor of an ideal international monetary orchestra, or the leader of an international oligopoly over monetary affairs. The Old Lady would signal policy changes by changing her discount rate, money would be called to London as a differential appeared between interest rates there and elsewhere, and other central banks would raise their own rates.

This is a way of giving back neoclassical virtue to institutions, like pre-1914 central banks, which on the contrary gave contemporary observers the distinct impression of being created exactly for the purpose of putting obstacles to international short-term capital movements which national economic authorities considered as endangering the economic policies which they were trying to enforce in their respective countries. Contemporary observers, in other words, thought that, far from forming an international orchestra expertly led by the Bank of England for the benefit of the world economy as a whole and of its component parts, central banks were increasingly used, in the course of the twenty years leading to World War II, as institutions whose role was to increase the national authorities' control over their national economic systems, on the assumption that it was not always for the benefit of each individual economy that the international cycle moved and international capital movements, especially short-term ones, occurred.

-102-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Currency Convertibility: The Gold Standard and Beyond
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Figures vii
  • Tables ix
  • Preface xiii
  • Part I - Overview 1
  • 1 - Introduction 3
  • 2 - The Operation of the Specie Standard 11
  • Part II - Myths and Realities of the Gold Standard 85
  • 3 - The Origins of the Gold Standard 87
  • 4 - Short-Term Capital Movements Under the Gold Standard 102
  • 5 - The Geography of the Gold Standard 113
  • Comment 144
  • Comment 151
  • Part III - Portuguese Currency Experience 157
  • 6 - First to Join the Gold Standard, 1854 159
  • 7 - Last to Join the Gold Standard, 1931 182
  • 8 - Monetary Stability, Fiscal Discipline and Economic Performance 204
  • Comment 228
  • Comment 233
  • Part IV - Implications for Europe in the 1990s 239
  • 9 - Converging Towards a European Currency Standard 241
  • Index 266
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 273

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.