Credibility and the International Monetary Regime: A Historical Perspective - Studies in Macroeconomic History

Marc Notes: Originally published: 2012.; Includes bibliographical references and index.; Since 1914 monetary regimes have gradually moved away from the gold standard, with varying success in maintaining price stability and credibility. This book presents ten studies which combine historical narrative with econometrics to analyze the role of credibility in four monetary regimes. Brief Description: This book presents ten studies which combine historical narrative with econometrics to analyze the role of credibility in four monetary regimes. Table of Contents: Part I. Introduction: 1. Credibility and the international monetary regime: theoretical and historical perspectives Michael D. Bordo and Ronald MacDonald; Part II. Classical Gold Standard: 2. Credibility and fundamentals: were the classical and inter-war gold standards well-behaved target zones? C. Paul Hallwood, Ronald MacDonald and Ian W. Marsh; 3. Interest rate interactions in the classical gold standard, 1880 1914: was there any monetary independence? Michael D. Bordo and Ronald MacDonald; 4. Realignment expectations and the US dollar, 1890 7: was there a peso problem? C. Paul Hallwood, Ronald MacDonald, and Ian W. Marsh; Part III. Inter-War Period: 5. The inter-war gold exchange standard: credibility and monetary independence Michael D. Bordo and Ronald MacDonald; 6. Crash! Expectational aspects of the UK's and the USA's departures from the inter-war gold standard C. Paul Hallwood, Ronald MacDonald and Ian W. Marsh; 7. Did impending war in Europe help destroy the gold bloc in 1936? An internal inconsistency hypothesis C. Paul Hallwood, Ronald MacDonald and Ian W. Marsh; Part IV. Bretton Woods Period: 8. Sterling in crisis: 1964 7 Michael D. Bordo, Ronald MacDonald and Michael J. Oliver; Part V. The European Monetary System: 9. On the mean-reverting properties of target zone exchange rates: some evidence from the ERM Myrvin Anthony and Ronald MacDonald; 10. Credibility and interest rate discretion in the ERM Hali Edison and Ronald MacDonald."Review Quotes: 'This collection of state-of-the-art studies, combining deep historical knowledge with modern statistical methods, sheds important new light on long-standing controversies concerning the evolution of the international monetary system.' Barry Eichengreen, University of California, BerkeleyReview Quotes: 'An excellent book and, when policy credibility comes once more on the front stage, a timely one.' Marc Flandreau, Graduate Institute of International and Development Studies, GenevaReview Quotes: 'This book constitutes a rigorous and compelling investigation of how credibility in fixed exchange rate systems can be tested and compared. It is a major contribution both to financial history and to policy debates about the circumstances in which pegged exchange rate systems can be sustained.' Harold James, Princeton UniversityReview Quotes: 'Trying to understand monetary policy without an appreciation of credibility is like watching Hamlet without the Prince of Denmark. This volume provides a one-stop shop for a balanced and comprehensive set of studies on monetary credibility; highly recommended.' Andrew K. Rose, Haas School of Business, University of California

Contributor Bio:  Bordo, Michael D Michael D. Bordo is professor of economics and director of the Center for Monetary and Financial History at Rutgers University. He is editor of a series of books, Studies in Macroeconomic History, and the author of Essays on the Gold Standard and Related Regimes, and (with Anna J. Schwartz) A Retrospective on the Classical Gold Standard 1821-1931. Contributor Bio:  MacDonald, Ronald Ronald MacDonald is currently the Adam Smith Professor of Political Economy at the University of Glasgow. He is also a Fellow of the Royal Society of Edinburgh, Research Fellow of the CESifo Research Network Munich and an International Fellow of the Kiel Institute of Economics. He holds a BA in economics from Heriot Watt University, Edinburgh and an MA and PhD from the University of Manchester. He has published widely in the areas of macroeconomics, monetary economics and international finance in journals such as the Journal of Monetary Economics, the Journal of Money Credit and Banking, the Economic Journal and the European Economic Review. His recent books include Exchange Rate Economics: Theories and Evidence (2007); The Political Economy of Financing Scottish Government (2009, with C. Paul Hallwood); and Currency Union and Exchange Rate Issues (2010, with Abdulrazak Al Faris).