The International Monetary System, 1844-1870: Arbitrage, Efficiency, Liquidity

37 Pages Posted: 9 Jan 2011

See all articles by Stefano Ugolini

Stefano Ugolini

University of Toulouse 1 - Laboratoire d'Etudes et de Recherches sur l'Économie, les Politiques et les Systèmes Sociaux (LEREPS)

Multiple version iconThere are 2 versions of this paper

Date Written: 2010

Abstract

This paper analyses the architecture of the international monetary system which preceded the international gold standard (1844-1870). It builds on a newly-created database made up of more than 100,000 weekly observations on exchange rates, interest rates, and bullion prices in the world’s six most important financial centers of the time. Market integration, substitutability of money market instruments, choice of the correct monetary standard reference, and currency liquidity are tested; moreover, an historical analysis is run, with special reference to financial crises. Contrary to received wisdom, the results point to a trend towards increasing multipolarism in the international monetary system before 1870.

Keywords: International monetary system, financial integration, money markets, bimetallism

JEL Classification: E42, F31, N20

Suggested Citation

Ugolini, Stefano, The International Monetary System, 1844-1870: Arbitrage, Efficiency, Liquidity (2010). Norges Bank Working Paper 2010/23 , Available at SSRN: https://ssrn.com/abstract=1735391 or http://dx.doi.org/10.2139/ssrn.1735391

Stefano Ugolini (Contact Author)

University of Toulouse 1 - Laboratoire d'Etudes et de Recherches sur l'Économie, les Politiques et les Systèmes Sociaux (LEREPS) ( email )

21, Allée de Brienne
Toulouse, 31042
France

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
78
Abstract Views
798
Rank
306,387
PlumX Metrics