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 - Review article
AN - SCOPUS:77952411970
SN - 0022-0507
VL - 70
SP - 27
EP - 56
JO - Journal of Economic History
JF - Journal of Economic History
IS - 1
ER -