1. Central Banking under the Gold Standard: Rist versus Hawtrey on the Policy of the Bank of France from 1928 to 1931
- Author
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Lucy Brillant, Pierre-Hernan Rojas, EconomiX, Université Paris Nanterre (UPN)-Centre National de la Recherche Scientifique (CNRS), Laboratoire d'Economie de Dijon (LEDi), Université de Bourgogne (UB)-Centre National de la Recherche Scientifique (CNRS), Philosophie, Histoire et Analyse des Représentations Économiques (PHARE), Université Paris 1 Panthéon-Sorbonne (UP1), Laboratoire d'Economie de Dauphine (LEDa), Université Paris Dauphine-PSL, Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL), Laboratoire d'Economie de Dijon ( LEDi ), Université de Bourgogne ( UB ) -Centre National de la Recherche Scientifique ( CNRS ), Philosophie, Histoire et Analyse des Représentations Economiques ( PHARE ), UNIVERSITE PARIS 1 PANTHEON-SORBONNE -Centre National de la Recherche Scientifique ( CNRS ), Laboratoire d'Economie de Dauphine ( LEDa ), Université Paris-Dauphine, and Université Paris Nanterre ( UPN ) -Centre National de la Recherche Scientifique ( CNRS )
- Subjects
gold exchange standard ,060106 history of social sciences ,General Arts and Humanities ,Keynesian economics ,05 social sciences ,Economics, Econometrics and Finance (miscellaneous) ,Gold standard ,gold accumulation ,06 humanities and the arts ,Demise ,Bank of England ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,open-market operations ,History and Philosophy of Science ,discount rate policy ,Open market operation ,0502 economics and business ,[No keyword available] ,Great Depression ,Economics ,[ SHS.ECO ] Humanities and Social Sciences/Economies and finances ,0601 history and archaeology ,050207 economics ,Bank of France ,asymmetry - Abstract
International audience; It is widely believed that the difficult return to the gold standard during the 1920s and its demise in 1931 intensified the Great Depression. An interesting way of thinking about national and international monetary mechanisms emerged from the debates between French and British policymakers during those years. We attempt to explain the failure of the Bank of France and the Bank of England to cooperate during that period of political tension by examining the monetary thinking of Charles Rist and Ralph George Hawtrey, who certainly greatly shaped the mindsets of policymakers during the interwar period. Both were involved in the controversy over the strategy of the Bank of France, which accumulated and sterilized gold between 1928 and 1931. Our paper describes the differing beliefs held by Hawtrey and Rist concerning the philosophy, instruments, and goals of monetary policy. This divergence in views may shed light on the contrasting advice they tendered about central banking practices and might explains why central banking cooperation failed.
- Published
- 2020