DP1390 Getting Pegged: Comparing the 1879 and 1925 Gold Resumptions

Author(s): Tamim Bayoumi, Michael D Bordo
Publication Date: April 1996
Keyword(s): Exchange Rate Pegs, Gold Standard
JEL(s): F31, F33, F36
Programme Areas: International Macroeconomics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=1390

We compare the resumption of convertibility into gold by the United States in 1879 and the United Kingdom in 1925 to ascertain the degree to which the outcomes reflect differences in strategies adopted by the authorities or in the external environment. It is concluded that external factors were the most important determinant of the very different outcomes of the two episodes.