Managing Exchange Rate Crises: Evidence from the 1890's
This paper investigates the effectiveness of the monetary
authority's borrowing policies in resolving exchange rate crises. It
shows why obtaining loans or lines of credIt in foreign currency may
avoid, at least temporarily, the deyaluation of a fixed exchange rate,
and discusses the problea of the optimal size of the loan and/or the
line of credit. The analysis focuses on a particular episode of foreign
exchange rate pressure, during the troubled years between 1894 to 1896.
The results suggest that the borrowing policy followed by the U.S.
Treasury in those years was effective in avoiding the collapse of the
United States' gold standard, and that the amount of the borrowing
undertaken by the Treasury might have been optimal.
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.