{
  "title": "Exchange Rates in the Periphery and International Adjustment Under the Gold Standard",
  "publication": "IMF Working Papers, February 1, 2003",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/exchange-rates-in-the-periphery-and-international-adjustment-under-the-gold-standard-16314",
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  "summary": "The role of exchange rate flexibility in the periphery of the gold standard has been grossly overlooked. This paper builds a new dataset on trade-weighed exchange rates for the period 1870-1913 and finds that large currency movements in periphery countries operating inconvertible paper-money and sil",
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    {
      "heading": "Summary and main conclusion",
      "content": "- The role of exchange rate flexibility in the periphery of the gold standard has been grossly overlooked.\n- The paper builds a new dataset on trade-weighed exchange rates for the period 1870-1913.\n- Large currency movements in periphery countries operating inconvertible paper-money and silver-standard regimes induced major fluctuations in effective exchange rates worldwide.\n- Such currency fluctuations had powerful effects on trade flows.\n- Conclusion: Nominal exchange rate flexibility in the periphery was an important ingredient of international payments adjustment under the gold standard."
    },
    {
      "heading": "Data and methodology",
      "content": "- New dataset: trade-weighed exchange rates covering the period 1870-1913.\n- Focus on periphery countries operating inconvertible paper-money and silver-standard regimes.\n- Analysis relates exchange rate movements to the international trade structure of the time."
    },
    {
      "heading": "Findings on exchange-rate behavior and international effects",
      "content": "- Periphery currency movements produced major fluctuations in effective exchange rates worldwide.\n- These fluctuations are linked to the structure of international trade during 1870-1913.\n- Currency fluctuations in the periphery had powerful effects on trade flows, implying significant external adjustment channels beyond gold-standard center behavior."
    },
    {
      "heading": "Policy implications and interpretation",
      "content": "- Nominal exchange rate flexibility outside the gold-standard core mattered for global adjustment mechanisms.\n- Recognition of periphery exchange-rate variability alters how international payments adjustment under the gold standard is understood; peripheral nominal flexibility should be treated as an important component of adjustment dynamics."
    },
    {
      "heading": "Publication and bibliographic specifics",
      "content": "- Authors: Luis Catão, Solomos Solomou\n- Date: February 1, 2003\n- Series: IMF Working Papers, Working Paper No. 2003/041\n- Volume: 2003\n- Issue: 041\n- Pages: 37\n- DOI: https://doi.org/10.5089/9781451846126.001\n- Stock No: WPIEA0412003\n- ISBN: 9781451846126\n- ISSN: 1018-5941\n\nSource: IMF Working Papers landing page for \"Exchange Rates in the Periphery and International Adjustment Under the Gold Standard\".\n\n---\n\n Content in this bundle\n\n- Exchange Rates in the Periphery and International Adjustment Under the Gold Standard - WP/03/41\n  - Exchange Rates in the Periphery and International Adjustment Under the Gold Standard - WP/03/41 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Exchange Rates in the Periphery and International Adjustment Under the Gold Standard - WP/03/41 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/exchange-rates-in-the-periphery-and-international-adjustment-under-the-gold-standard-16314"
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    "Authors: Luis Catão, Solomos Solomou",
    "Published: February 1, 2003",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451846126.001",
    "The role of exchange rate flexibility in the periphery of the gold standard has been grossly overlooked.",
    "The paper builds a new dataset on trade-weighed exchange rates for the period 1870-1913.",
    "Large currency movements in periphery countries operating inconvertible paper-money and silver-standard regimes induced major fluctuations in effective exchange rates worldwide.",
    "Such currency fluctuations had powerful effects on trade flows.",
    "Conclusion: Nominal exchange rate flexibility in the periphery was an important ingredient of international payments adjustment under the gold standard.",
    "New dataset: trade-weighed exchange rates covering the period 1870-1913.",
    "Focus on periphery countries operating inconvertible paper-money and silver-standard regimes.",
    "Analysis relates exchange rate movements to the international trade structure of the time.",
    "Periphery currency movements produced major fluctuations in effective exchange rates worldwide.",
    "These fluctuations are linked to the structure of international trade during 1870-1913.",
    "Currency fluctuations in the periphery had powerful effects on trade flows, implying significant external adjustment channels beyond gold-standard center behavior.",
    "Nominal exchange rate flexibility outside the gold-standard core mattered for global adjustment mechanisms.",
    "Recognition of periphery exchange-rate variability alters how international payments adjustment under the gold standard is understood; peripheral nominal flexibility should be treated as an important component of adjustment dynamics.",
    "Authors: Luis Catão, Solomos Solomou",
    "Date: February 1, 2003",
    "Series: IMF Working Papers, Working Paper No. 2003/041",
    "Volume: 2003",
    "Issue: 041",
    "Pages: 37",
    "DOI: https://doi.org/10.5089/9781451846126.001",
    "Stock No: WPIEA0412003",
    "ISBN: 9781451846126",
    "ISSN: 1018-5941",
    "**Exchange Rates in the Periphery and International Adjustment Under the Gold Standard - WP/03/41**"
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