EH.Net Abstracts in Economic History

           EHS Abstract Submission
                    (c) 1996 Academic Press and EH.Net
-----------------------------------------------------------
              Name:  Marc Flandreau
               Email:  author at cs.muohio.edu
         Institution:  OFCE, Paris, and CEPR, London  

         Co-author:  None
 
             Title:  Adjusting to the Gold Rush: Endogenous
                Bullion Points and the French Balance of 
                Payments, 1846-1870
 
  Internet Address
of abstracted work:  Not available on the Internet  

           By mail:  
                        Marc Flandreau
                        OFCE
                        69 Quai d'Orsay 
                        75007 Paris
                        France

          Language:  English
 
          Abstract:
   In this paper, we lay the foundations of bullion points theory
in the context of exchange rate analysis between bimetallic and
monometallic nations.  The theory is then applied to the study of
Paris-London exchange rates between 1846 and 1870.  In
particular, we show that both the position and spread of bullion
points between monometallic and bimetallic nations reacted
endogenously to shocks on international gold and silver markets.
The distance between the upper and lower specie points tended to
shrink when large disequilibria occurred on world bullion
markets, and to expand when these disequilibria receded.  Second,
we show that bullion point constrictions and dilations as well as
exchange-rate movements triggered specie flows in and out of
France, as a way to stabilize initial imbalances.  France acted
as the arbitrageur of last resort between the gold and silver
segments of the international monetary system, and this in turn
placed a substantial amount of endogenous pressure on its
monetary system.

 
      Bibliography:  Marc Flandreau,  "Adjusting to the Gold Rush:
                Endogenous Bullion Points and the French Balance 
                of Payments 1846-1870," Explorations in Economic
History
                (October 1996).
 
                  Subject:  H
        Geographical Area:  4
           Country/Region:  France
              Time Period:  7