A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2017; you can also visit the original URL.
The file type is application/pdf
.
Currency Mismatches, Default Risk, and Exchange Rate Depreciation: Evidence from the End of Bimetallism
2006
Social Science Research Network
We use France's decision to suspend the free coinage of silver in 1876 as an historical quasiexperiment to examine the impact of a currency mismatch on sovereign default risk. This event played a paramount role in causing a large exogenous depreciation of the nominal exchange rates of all silver standard countries versus gold-backed currencies such as the British pound-the currency in which much of their debt was payable. Our identifying assumption is that France's decision to end bimetallism
doi:10.2139/ssrn.941178
fatcat:53ncyctwyzdp3jrlqjqrvkt5em