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Final Years of the Silver Standard in Mexico: Evidence of Purchasing Power Parity with The United States

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  • Bojanic, Antonio N.

Abstract

This paper focuses on the use of silver as a monetary standard in Mexico during approximately the last three decades of the nineteenth century and the first decade of the twentieth century. During this period, several events occurred in the market for silver that affected those countries attached to this metal. These events caused some of these countries to abandon silver for good and adopt other types of monetary arrangements. Mexico and a few others chose to stay with it. The reasons behind this decision are analyzed. Additionally, evidence that supports the theory of purchasing power parity between Mexico and the United States is also presented and analyzed.

Suggested Citation

  • Bojanic, Antonio N., 2011. "Final Years of the Silver Standard in Mexico: Evidence of Purchasing Power Parity with The United States," MPRA Paper 45535, University Library of Munich, Germany, revised 27 Jul 2011.
    • Handle: RePEc:pra:mprapa:45535
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    References listed on IDEAS

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    1. Kenneth Rogoff, 1996. "The Purchasing Power Parity Puzzle," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 647-668, June.
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    6. Antonio N. Bojanic, 2010. "Evidence Of Purchasing Power Parity In Silver‐Backed Mexico And India," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 50(3), pages 306-320, November.
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    8. Marc Flandreau, 2004. "The Glitter of Gold : France, Bimetallism, and the Emergence of the International Gold Standard, 1848-1873," Post-Print hal-03568230, HAL.
    9. Froot, Kenneth A. & Rogoff, Kenneth, 1995. "Perspectives on PPP and long-run real exchange rates," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 32, pages 1647-1688, Elsevier.
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    11. Michael D. Bordo & Christopher M. Meissner & Marc D. Weidenmier, 2006. "Currency Mismatches, Default Risk, and Exchange Rate Depreciation: Evidence from the End of Bimetallism," NBER Working Papers 12299, National Bureau of Economic Research, Inc.
    12. A. Piatt Andrew, 1904. "The End of the Mexican Dollar," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 18(3), pages 321-356.
    13. Catao, Luis A V, 1998. "Mexico and Export-Led Growth: The Porfirian Period Revisited," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 22(1), pages 59-78, January.
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    Cited by:

    1. Yokoyama, Kazuki, 2023. "Whispers of Chaos: Intervention on the Mexican Dollar Quotes in Japan, 1869-1885," MPRA Paper 118586, University Library of Munich, Germany.

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    More about this item

    Keywords

    Mexico; silver standard; theory of purchasing power parity;
    All these keywords.

    JEL classification:

    • N0 - Economic History - - General
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations

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