Abstract
Why did policymakers adopt the gold standard? We first examine the political economy of Japan's adoption of the gold standard in 1897 by exploring the ex ante motives of policymakers as well as how the legislative decision to adopt gold won approval. We then show that joining the gold standard did not reduce Japanese interest rates or lead to a domestic investment boom. However, we find that membership in the gold standard increased Japan's exports by lowering transactions costs. Joining gold allowed Japan to tap into its growing share of global trade that was centered on the gold standard.
| Original language | English |
|---|---|
| Pages (from-to) | 27-56 |
| Number of pages | 30 |
| Journal | Journal of Economic History |
| Volume | 70 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2010 Mar |
| Externally published | Yes |
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ASJC Scopus subject areas
- History
- Economics, Econometrics and Finance (miscellaneous)
- Economics and Econometrics
Cite this
Why did countries adopt the gold standard? lessons from japan. / Mitchener, Kris James; Shizume, Masato; Weidenmier, Marc D.
In: Journal of Economic History, Vol. 70, No. 1, 03.2010, p. 27-56.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Why did countries adopt the gold standard? lessons from japan
AU - Mitchener, Kris James
AU - Shizume, Masato
AU - Weidenmier, Marc D.
PY - 2010/3
Y1 - 2010/3
N2 - Why did policymakers adopt the gold standard? We first examine the political economy of Japan's adoption of the gold standard in 1897 by exploring the ex ante motives of policymakers as well as how the legislative decision to adopt gold won approval. We then show that joining the gold standard did not reduce Japanese interest rates or lead to a domestic investment boom. However, we find that membership in the gold standard increased Japan's exports by lowering transactions costs. Joining gold allowed Japan to tap into its growing share of global trade that was centered on the gold standard.
AB - Why did policymakers adopt the gold standard? We first examine the political economy of Japan's adoption of the gold standard in 1897 by exploring the ex ante motives of policymakers as well as how the legislative decision to adopt gold won approval. We then show that joining the gold standard did not reduce Japanese interest rates or lead to a domestic investment boom. However, we find that membership in the gold standard increased Japan's exports by lowering transactions costs. Joining gold allowed Japan to tap into its growing share of global trade that was centered on the gold standard.
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U2 - 10.1017/S0022050710000045
DO - 10.1017/S0022050710000045
M3 - Article
VL - 70
SP - 27
EP - 56
JO - Journal of Economic History
JF - Journal of Economic History
SN - 0022-0507
IS - 1
ER -