Mon Jan 29 12:08:10 EST 2001
ABSTRACTS IN ECONOMIC HISTORY
(c) 2001 EH.Net
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Name: Christopher Meissner
Email: meissner at econ.berkeley.edu
Institution: University of California at Berkeley
Co-author: Jose Ernesto Lopez Cordova
Trade Economist
Integration, Trade, and Hemispheric Issues Division
Inter-American Development Bank
1300 New York Ave. NW
Stop W0608
Washington, DC 20577
U.S.A.
Tel: (202)623-2469
Fax: (202)623-2169
Email: joselc at iadb.org
Title: Exchange-Rate Regimes and International Trade: Evidence from
the Classical Gold Standard Era
Internet Address of abstracted work:
http://www.haas.berkeley.edu/groups/iber/wps/ciderwp.htm
By mail:
Department of Economics
U.C. Berkeley
549 Evans Hall, #3880
Berkeley, CA 94720-3880
Phone: (510) 841-0736
Fax: (510) 841-0736
Language: English
Abstract:
In this paper we show that the spread of the classical gold standard
in the late nineteenth century increased international trade flows.
This positive effect was compounded whenever a group of countries
formed a monetary union. Applying the gravity model of trade to more
than 1,100 country pairs during the 1870-1910 period, we find that
two countries on gold would trade 60 percent more with each other
than with countries on a different monetary standard. Moreover, a
monetary union would more than double bilateral trade flows. Our
findings are relevant for current discussions on alternative monetary
arrangements for the twenty-first century.
Bibliography: Meissner, Christopher and Jose Ernesto Lopez Cordova.
"Exchange-Rate Regimes and International Trade: Evidence from the
Classical Gold Standard Era." Manuscript, University of California at
Berkeley and Inter-American Development Bank, 2001.
Subject: H,S
Geographical Area: 0
Country/Region:
Time Period: 7,8
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