Battle of Trafalgar holds lessons on global liquidity – CEPR paper
Newly formed BdF struggled to cope with sudden loss of access to dominant currency
Studying the aftermath of the Battle of Trafalgar helps to shed light on the devastating financial impact of a sudden shortage of global liquidity, a paper published on May 11 argues.
The discussion paper – by economists from the Banque de France (BdF), Bank for International Settlements and Cunef University of Madrid – says the pivotal naval battle represents a “quasi-natural experiment”, allowing economists to study the effects of a sudden cut to the supply of the dominant global currency.
The
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: www.centralbanking.com/subscriptions
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on International
Book notes: Redefining the monetary standard in the digital age, by Livio Stracca
A comprehensive and readable account of what digitalisation could mean for monetary policy
Book notes: Can Europe survive? By David Marsh
Marsh poses important questions and cannot be blamed for failing to produce a roadmap to continental salvation
Supply-side shock stuns central banks
The partial closure of the Strait of Hormuz raises fresh challenges for central bank policy-makers
NBU governor calls for EU probe into asset seizure
State-owned bank’s staff now released from custody, but assets remain in Hungary
Europe should be more independent of US – Nagel
Bundesbank president is latest ECB governing council member to call for European CBDC
Lagarde downplays odds of early exit
ECB president uses interviews to say she is on a ‘mission’ with a ‘baseline’ of serving out her term
Reform rules or risk ‘coercion and mercantilism’ – Lagarde
ECB president says it is better to revise current international order than to abandon it
ECB to offer repo line access to almost all central banks
Euro liquidity ‘granted by default’ unless breaching AML/CFT rules or sanctions, says Lagarde