Do old habits die hard? Central banks and the Bretton Woods gold puzzle

• 成果类型: Article
• 署名作者: Monnet, Eric; Puy, Damien
• 署名单位: Paris School of Economics; International Monetary Fund
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2020.103394
• 发表日期: 2020
• 关键词: central banking; Foreign reserves; Culture & beliefs; Bretton Woods; gold; International monetary system

摘要

We assess the importance of individual and institutional experience in shaping macroeconomic policy by studying the persistence of gold standard monetary practices in the Bretton Woods system. Using new data from the IMF archives, we show that, although they were not required to, countries continued to back currency in circulation with gold. The longer an institution spent in the gold standard (and the older the policymakers), the tighter the link between gold and currency. Such old habits prevented dollars and gold from working as perfect substitutes and ultimately contributed to the demise of the Bretton Woods system. Our findings highlight the persistence of past practices, even in the face of radical institutional change, and its consequences on the international monetary system. (c) 2020 Elsevier B.V. All rights reserved.