The Gold Standard and the Balance of Payments

1926 ◽  
Vol 36 (141) ◽  
pp. 50
Author(s):  
R. G. Hawtrey
Keyword(s):  
Gold Standard ◽  
Balance Of Payments

scholarly journals GONE WITH THE EURO: A REAPPRAISAL OF THE PESETA’S ADJUSTMENT MECHANISM (1870-1998)

2017 ◽  
Vol 35 (2) ◽  
pp. 207-239
Author(s):  
José María Serrano ◽  
María Dolores Gadea ◽  
Marcela Sabaté
Keyword(s):  
Gold Standard ◽  
Empirical Support ◽  
Balance Of Payments ◽  
Adjustment Mechanism

AbstractThe peseta was the Spanish currency for more than a century and, during this time, it played a remarkable role in adjusting the balance of payments. This paper presents a chronology of the moments when the adjustment was crucial, which, consistent with the macro-trilemma, coincided with periods of external openness. Moreover, this paper provides empirical support to the thesis that links the exceptionality of a floating peseta during the gold standard with fiscal profligacy.

scholarly journals A Note on Russia's Merchandise Balance and Balance of Payments During the Industrialization Era

Slavic Review ◽  
1979 ◽  
Vol 38 (4) ◽  
pp. 655-662 ◽  
Author(s):  
Paul R. Gregory
Keyword(s):  
Foreign Policy ◽  
Gold Standard ◽  
Balance Of Payments ◽  
Considerable Importance ◽  
Economic Independence ◽  
Before And After ◽  
Balance Of Trade ◽  
Potential Loss ◽  
The Government

Russia's balance of trade (torgovyi balans) and balance of payments (raschetnyi balans) were matters of great concern to the tsarist government before and after the introduction of the gold standard in 1897. Tsarist officials feared that the gold reserves required to maintain (or to go on) the gold standard would be lost if payments abroad exceeded receipts. Moreover, there was concern over the potential loss of political and economic independence if the government had to borrow abroad regularly in order to cover international payments deficits. Russia's foreign policy toward France and Germany was affected significantly by this consideration. Thus, considerable importance rested on the reported estimates of these two balances.

The Russian Balance of Payments, the Gold Standard, and Monetary Policy: A Historical Example of Foreign Capital Movements

1979 ◽  
Vol 39 (2) ◽  
pp. 379-400 ◽  
Author(s):  
Paul R. Gregory
Keyword(s):  
Foreign Investment ◽  
Gold Standard ◽  
Foreign Capital ◽  
Balance Of Payments ◽  
Ideal Case ◽  
Demand And Supply ◽  
Capital Movements ◽  
Fiat Money ◽  
The Relationship

This paper reports new calculations of foreign investment in Russia between 1881 and 1913. As the major recipient of foreign capital under the gold standard, Russia provides an ideal case study of capital flows among countries. The conclusions are that the influx of foreign investment into Russia following convertibility was much more substantial than the early estimates suggested and that the Russian growth rate was raised by about 0.5 percent annually as a consequence of the gold standard. The major cost of achieving convertibility was that two-thirds of official borrowing abroad between 1885 and 1897 was used to acquire gold reserves, but the ensuing growth benefits which are estimated far outweigh these costs. The Russian case confirms the standard portfolio theory of capital movements, and the relationship between the demand and supply of fiat money explains observed variations in the exchange rate.

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