Do old habits die hard? Central banks and the Bretton Woods gold puzzle
Eric Monnet
(1, 2, 3)
,
Damien Puy
(4)
Eric Monnet
- Fonction : Auteur
- PersonId : 743081
- IdHAL : eric-monnet
- ORCID : 0000-0003-1445-8883
- IdRef : 127336184
Résumé
We assess the importance of individual and institutional experience in shaping macroeconomic policy by studying the persistence of gold standard monetary practices in the Bretton Woods system. Using new data from the IMF archives, we show that, although they were not required to, countries continued to back currency in circulation with gold. The longer an institution spent in the gold standard (and the older the policymakers), the tighter the link between gold and currency. Such “old habits” prevented dollars and gold from working as perfect substitutes and ultimately contributed to the demise of the Bretton Woods system. Our findings highlight the persistence of past practices, even in the face of radical institutional change, and its consequences on the international monetary system.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Do old habits die hard? Central banks and the Bretton Woods gold puzzle
|
Résumé |
en
We assess the importance of individual and institutional experience in shaping macroeconomic policy by studying the persistence of gold standard monetary practices in the Bretton Woods system. Using new data from the IMF archives, we show that, although they were not required to, countries continued to back currency in circulation with gold. The longer an institution spent in the gold standard (and the older the policymakers), the tighter the link between gold and currency. Such “old habits” prevented dollars and gold from working as perfect substitutes and ultimately contributed to the demise of the Bretton Woods system. Our findings highlight the persistence of past practices, even in the face of radical institutional change, and its consequences on the international monetary system.
|
Auteur(s) |
Eric Monnet
1, 2, 3
, Damien Puy
4
1
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
2
PJSE -
Paris Jourdan Sciences Economiques
( 578027 )
- 48 boulevard Jourdan 75014 Paris
- France
3
CEPR -
Center for Economic Policy Research
( 143559 )
- Royaume-Uni
4
IMF -
IMF
( 136963 )
- États-Unis
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2020-11
|
Volume |
127
|
Public visé |
Scientifique
|
Numéro d'article |
|
Domaine(s) |
|
Mots-clés (JEL) |
|
Projet(s) ANR |
|
Mots-clés |
en
Central banking, Foreign reserves, Culture & beliefs, Bretton Woods, Gold, International monetary system
|
DOI | 10.1016/j.jinteco.2020.103394 |
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