GONE WITH THE EURO: A REAPPRAISAL OF THE PESETA'S ADJUSTMENT MECHANISM (1870-1998)

José María Serrano, María Dolores Gadea, Marcela Sabaté
2017 Revista de Historia Económica / Journal of Iberian and Latin American Economic History  
The peseta was the Spanish currency for more than a century and, during this time, it played a remarkable role in adjusting the balance of payments. This paper presents a chronology of the moments when the adjustment was crucial, which, consistent with the macro-trilemma, coincided with periods of external openness. Moreover, this paper provides empirical support to the thesis that links the exceptionality of a floating peseta during the gold standard with fiscal profligacy.
doi:10.1017/s0212610917000040 fatcat:7fg4aq4xnzgcve32ez64r3ku6m