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—a possibility 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 tothe classical gold standard…. In 1873, as in 1890 and 1907, the hegemonic monetaryauthority, 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 hegemonicstability if the lender, Paris, is elevated to the status of a hegemonic financialcenter—a possibility to which Kindleberger is led by his analysis of late nineteenthcentury financial crises. But elevating Paris to parity with London would do muchto undermine the view of the classical gold standard that attributes its durabilityto management by a single financial center.
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