01802cas a2200253 a 4500 AALejournalIMF002290 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451846126 1018-5941 BD-DhAAL BD-DhAAL Catao, Luis. Exchange Rates in the Periphery and International Adjustment Under the Gold Standard / Luis Catao, Solomos Solomou. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The role of exchange rate flexibility in the periphery of the gold standard has been grossly overlooked. This paper builds a new dataset on trade-weighed exchange rates for the period 1870-1913 and finds that large currency movements in periphery countries operating inconvertible paper-money and silver-standard regimes induced major fluctuations in effective exchange rates worldwide. We relate the phenomenon to the international trade structure at the time and show that such currency fluctuations had powerful effects on trade flows. We conclude that nominal exchange rate flexibility in the periphery was an important ingredient of international payments adjustment under the gold standard. Mode of access: Internet Solomou, Solomos. IMF Working Papers; Working Paper ; No. 2003/041 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/041/001.2003.issue-041-en.xml IMF e-Library