The Determinants of the Discount Rate in Italy, 1876-1913: An Empirical and Documentary Analysis

35 Pages Posted: 5 Feb 2006 Last revised: 12 May 2010

See all articles by Franco Spinelli

Franco Spinelli

University of Brescia - Department of Economics

Carmine Trecroci

University of Brescia

Date Written: September 13, 2004

Abstract

There are very few studies of the behaviour of the Italian discount rate under the gold standard. This essay investigates the problem first by estimating some simple models of the discount rate, using monthly and annual time series, and then with a documentary analysis. The main finding is that the Italian discount rate depended above all on the internal liquidity ratio and, only in the periods of full convertibility of the lira, on the English discount rate. Confirming one finding of previous non-quantitative studies, the estimates also show that the Italian monetary authorities made a far less intense use of interest rate changes than those of the other countries of the system.

Note: Downloadable document is in Italian.

JEL Classification: F31, E44, C32

Suggested Citation

Spinelli, Franco and Trecroci, Carmine, The Determinants of the Discount Rate in Italy, 1876-1913: An Empirical and Documentary Analysis (September 13, 2004). Available at SSRN: https://ssrn.com/abstract=880088 or http://dx.doi.org/10.2139/ssrn.880088

Franco Spinelli

University of Brescia - Department of Economics ( email )

Via San Faustino 74B
Brescia, 25122
Italy

Carmine Trecroci (Contact Author)

University of Brescia ( email )

Via San Faustino 74B
Brescia, 25122
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
102
Abstract Views
1,619
PlumX Metrics