Scylla and Charybdis: Explaining Europe's Exit from Gold, January 1928 - December 1936
42 Pages Posted: 9 Jun 2008
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Scylla and Charybdis - Explaining Europe's Exit from Gold, January 1928 - December 1936
Date Written: February 2008
Abstract
The paper examines the timing of exit from the interwar gold-exchange standard for a panel of European countries, based on monthly data over the period January 1928 - December 1936. I show that the decision of exit from gold can be understood in terms of a trade-off between a quite limited set of factors commonly suggested in the theoretical literature on currency crises. A simple and parsimonious econometric framework that nests various hypotheses allows predicting the very month when a country will exit gold in the 1930s.
Keywords: Europe, Gold-Exchange Standard, Interwar Period
JEL Classification: E42, E44, N14
Suggested Citation: Suggested Citation
CESifo (Center for Economic Studies and Ifo Institute) ( email )
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Munich, DE-81679
Germany
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