Interest rate interactions in the classical gold standard, 1880-1914: was there any monetary independence?

• 成果类型: Article
• 署名作者: Bordo, MD; MacDonald, R
• 署名单位: Rutgers University System; Rutgers University New Brunswick; National Bureau of Economic Research; University of Glasgow; Leibniz Association; Ifo Institut
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2004.05.008
• 发表日期: 2005
• 页码: 307-327
• 关键词: target zone; monetary independence

摘要

This paper examines an hypothesis of Svensson (1994) (Journal of Monetary Economics 33, 157-199) that a credible target zone can confer on a country a degree of independence in the operation of its monetary policy, even when exchange rates are fixed. We test this hypothesis for the Classical gold standard using a newly created monthly data base for the period 1880-1913. Building on the recently noted finding that the Classical gold standard represented a credible, well-behaved, target zone system we propose a number of ways of testing the Svensson' model. Our main finding is that the Classical gold standard did indeed confer some independence in the operation of monetary policy for participating countries. This would seem to have an important bearing on the kind of institutional framework required for a modern day target zone to function effectively and, in particular, to weather speculative attacks. (c) 2005 Elsevier B.V. All rights reserved.