The international lender-of-last-resort argument is more difficult to apply to the classical gold standard…. In 1873, as in 1890 and 1907, the hegemonic monetary authority, the Bank of England, would have been the “borrower of last resort” rather than the lender.[This fact] might be reconciled with the theory of hegemonic stability if the lender, Paris, is elevated to the status of a hegemonic financial center—apossibility to which Kindleberger is led by his analysis of late nineteenth century financial crises. But elevating Paris to parity with London would do much to undermine the view of the classical gold standard that attributes its durability to management by a single financial center.
The international lender-of-last-resort argument is more difficult to apply to the classical gold standard…. In 1873, as in 1890 and 1907, the hegemonic monetary authority, the Bank of England, would have been the “borrower of last resort” rather than the lender.[This fact] might be reconciled with the theory of hegemonic stability if the lender, Paris, is elevated to the status of a hegemonic financial center—apossibility to which Kindleberger is led by his analysis of late nineteenth century financial crises. But elevating Paris to parity with London would do much to undermine the view of the classical gold standard that attributes its durability to management by a single financial center.
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