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The Ties that Divide: A Network Analysis of the International Monetary System, 1890–1910

Published online by Cambridge University Press:  22 November 2005

MARC FLANDREAU  and
CLEMENS JOBST
MARC FLANDREAU
Affiliation:
Professor of economics, Chaire de finances internationales, Institut d'Etudes Politiques de Paris, 27 Rue Saint-Guillaume, 75007 Paris, France. E-mail: [email protected].
CLEMENS JOBST
Affiliation:
Ph.D. candidate, Chaire de finances internationales, Institut d'Etudes Politiques de Paris, 27 Rue Saint-Guillaume, 75007 Paris, France. E-mail: [email protected].
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Abstract

Conventional studies of the late-nineteenth-century international monetary system refer heuristically to “core” and “peripheral” countries. In this article, we seek to provide rigorous foundations to such expressions. Applying a formal procedure borrowed from network analysis produces indices of centrality and systematic rankings. We show that the international monetary system of the late nineteenth century is best described as a three-tier system. Other findings include the discovery of a closely knitted European foreign exchange system, a complete lack of foreign exchange linkages within Latin America, emerging intra-Asian relations, and a fairly late ascendancy of the U.S. dollar.

Type
ARTICLES
Information
The Journal of Economic History , Volume 65 , Issue 4 , December 2005 , pp. 977 - 1007
Copyright
© 2005 The Economic History Association

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