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Following the yellow brick road: how the United States adopted the gold standard

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  • Francois R. Velde

Abstract

The United States, with some difficulty, adopted the gold standard in the late nineteenth century, thus pegging the dollar to the pound sterling and other currencies. Some have argued it was mistake, others that it was inevitable. This article recounts the historical background and uses a model to shed light on the choices faced by policymakers of the time.

Suggested Citation

  • Francois R. Velde, 2002. "Following the yellow brick road: how the United States adopted the gold standard," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 26(Q II), pages 42-58.
    • Handle: RePEc:fip:fedhep:y:2002:i:qii:p:42-58:n:v.26no.2
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    1. Flandreau, Marc, 1996. "The French Crime of 1873: An Essay on the Emergence of the International Gold Standard, 1870–1880," The Journal of Economic History, Cambridge University Press, vol. 56(4), pages 862-897, December.
    2. Friedman, Milton, 1990. "The Crime of 1873," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1159-1194, December.
    3. Victoria Miller, 1993. "Exchange rate crises with domestic bank runs: Evidence from the 1890S," Cahiers de recherche du Département des sciences économiques, UQAM 9315, Université du Québec à Montréal, Département des sciences économiques.
    4. Drake, Louis S., 1985. "Reconstruction of a bimetallic price level," Explorations in Economic History, Elsevier, vol. 22(2), pages 194-219, April.
    5. Grilli, Vittorio, 1990. "Managing exchange rate crises: evidence from the 1890s," Journal of International Money and Finance, Elsevier, vol. 9(3), pages 258-275, September.
    6. Flandreau, Marc, 1995. "An Essay on the Emergence of the International Gold Standard, 1870-80," CEPR Discussion Papers 1210, C.E.P.R. Discussion Papers.
    7. Marc Flandreau, 1996. "The French Crime of 1873: An Essay on the Emergence of the International Gold Standard, 1870-1880," Post-Print hal-03416271, HAL.
    8. Marc Flandreau, 1996. "The French Crime of 1873: An Essay on the Emergence of the International Gold Standard, 1870-1880," Post-Print hal-03416270, HAL.
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    Keywords

    Bimetallism; Gold; Money;
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