Arbeitspapier
Credibility of the Interwar Gold Standard, Uncertainty, and the Great Depression
This paper constructs a theoretical model to show how the credibility of a country s commitment to an international gold standard regime is driven by fundamental determinants such as: 1) shifts in domestic policy, 2) a breakdown in cooperation between central banks, and 3) unilateral devaluations by foreign central banks. Because the credibility of the gold standard regime is an important determinant of domestic interest rate uncertainty, the latter is endogenously linked to changes in the fundamental determinants. Applying this analysis to the inter-war period, the paper shows that GARCH measures of interest rate uncertainty rose dramatically in the U.S. during the early 1930s and that movements in this series can be explained by events which affected the credibility of the U.S. commitment to the gold standard. Also, interest rate uncertainty explains a great deal of the variation in aggregate output and its components during the interwar period. Thus there is evidence that the breakdown in the gold standard contributed to the Great Depression by injecting increased uncertainty into the U.S. economy.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 102
- Klassifikation
-
Wirtschaft
Business Fluctuations; Cycles
Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
Central Banks and Their Policies
Open Economy Macroeconomics
International Policy Coordination and Transmission
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Ferderer, J. Peter
- Ereignis
-
Veröffentlichung
- (wer)
-
Levy Economics Institute of Bard College
- (wo)
-
Annandale-on-Hudson, NY
- (wann)
-
1994
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Ferderer, J. Peter
- Levy Economics Institute of Bard College
Entstanden
- 1994
Ähnliche Objekte (12)
The interwar depression in an international context
Interwar Deflation and Depression
The effects of transmission uncertainty on the flexibility-credibility tradeoff in monetary policy
The interwar years : 1918 - 1933
The Credibility of Certifiers
The German minority in interwar Poland
The Mixed Arbitral Tribunals of the Interwar Period
The ‘Weimar Experience’ in British Interwar Writing
Return of the tariffs: The interwar trade collapse revisited
Return of the Tariffs : The Interwar Trade Collapse Revisited
The credibility of central bank announcements
Incomplete information, credibility and the Core
The interwar depression in an international context
Interwar Deflation and Depression
The effects of transmission uncertainty on the flexibility-credibility tradeoff in monetary policy
The interwar years : 1918 - 1933
The Credibility of Certifiers
The German minority in interwar Poland
The Mixed Arbitral Tribunals of the Interwar Period
The ‘Weimar Experience’ in British Interwar Writing
Return of the tariffs: The interwar trade collapse revisited
Return of the Tariffs : The Interwar Trade Collapse Revisited
The credibility of central bank announcements
Incomplete information, credibility and the Core
The interwar depression in an international context
Interwar Deflation and Depression
The effects of transmission uncertainty on the flexibility-credibility tradeoff in monetary policy
The interwar years : 1918 - 1933
The Credibility of Certifiers
The German minority in interwar Poland
The Mixed Arbitral Tribunals of the Interwar Period
The ‘Weimar Experience’ in British Interwar Writing
Return of the tariffs: The interwar trade collapse revisited
Return of the Tariffs : The Interwar Trade Collapse Revisited
The credibility of central bank announcements