Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Department of Economics, Lund University Working Papers, Department of Economics, Lund University

No 2011:19:
Belling the cat: Eli F. Heckscher on the gold standard as a discipline device

Klas Fregert ()

Abstract: Unlike Knut Wicksell, Eli Heckscher did not believe the time had arrived for “managed money” to replace the gold standard after World War I. The war had shown that only a gold standard could bind the central bank to a time-consistent policy with reasonable price stability. Heckscher likened the problem of reinstating the gold standard to “Belling the cat” in Aesop’s fable. When the international gold standard crumbled in the Great Depression, he supported the Swedish price stabilization regime as a temporary system. Heckscher was an early discoverer of the time-consistency problem in monetary policy and hence stressed the importance of the institutional framework of monetary policy.

Keywords: Heckscher; time-consistent policy; devaluation; deflation; gold standard; (follow links to similar papers)

JEL-Codes: B22; E31; E42; (follow links to similar papers)

35 pages, June 14, 2011

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

WP11_19.pdf    PDF-file
Download Statistics
This paper is published as:
Fregert, Klas, (2013), 'Belling the cat: Eli F. Heckscher on the gold standard as a discipline device', History of Political Economy, Vol. 45, No. 1, pages 39-59

Questions (including download problems) about the papers in this series should be directed to David Edgerton ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:lunewp:2011_019 This page was generated on 2014-12-14 19:24:58