Instability and Volatility of Foreign Exchange Rates

  • J. Barkley RosserJr.


It was World War I that shattered the Victorian-Edwardian dreamworld of continuous progress in a stable world order. No greater symbol of that order existed than the international gold standard of the late nineteenth and early twentieth centuries, with its inherent structure of fixed exchange rates, all overseen by a dominant Bank of England in a dominant Great Britain. Such an order could support the gradualistic impulses of Alfred Marshall in his avid declaration from 1890 onward that “natura non facit saltum.” This exchange rate stability provided the essential anchor for such a view in the face of the numerous financial panics that occurred throughout this period, as well as the deep depressions of the 1870s and 1890s.


Exchange Rate Monetary Policy Purchase Power Parity Money Demand Exchange Rate Regime 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Kluwer Academic Publishers 1991

Authors and Affiliations

  • J. Barkley RosserJr.
    • 1
  1. 1.Department of EconomicsJames Madison UniversityUSA

Personalised recommendations