Why did countries adopt the gold standard? lessons from japan

Kris James Mitchener; Masato Shizume; Marc D. Weidenmier

doi:10.1017/S0022050710000045

Why did countries adopt the gold standard? lessons from japan

Kris James Mitchener, Masato Shizume, Marc D. Weidenmier

Research output: Contribution to journal › Review article › peer-review

20 Citations (Scopus)

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	https://doi.org/10.1017/S0022050710000045
Publication status	Published - 2010 Mar 1
Externally published	Yes

ASJC Scopus subject areas

History
Economics and Econometrics
Economics, Econometrics and Finance (miscellaneous)

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Why did countries adopt the gold standard? lessons from japan

Abstract

ASJC Scopus subject areas

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