Estimating medieval market integration: Evidence from exchange rates

In this paper we present a new method for estimating market integration under a commodity money system such as that which existed in Europe until the demise of the gold standard. The approach is based on the analysis of deviations between exchange rates and parity, which under conditions of a perfectly functioning and fully integrated market should not exceed the bullion points. Consequently the time needed for adjustment, following a violation of the bullion points, can be used as an indicator of market imperfections and as a measure of integration. We apply this approach to trade between late medieval Flanders, Lübeck and Prussia, our results showing that Flanders-Lübeck constituted a much better-integrated market than Flanders-Prussia. Moreover, the results indicate that the degree of market integration increased between the early fourteenth and the middle of the fifteenth century. --

Distributional impact of commodity price shocks: Australia over a century

This paper explores the distributional impact of commodity price shocks over the both the short and very long run. Using a GARCH model, we find that Australia experienced more volatility than many commodity exporting poor countries between 1865 and 2007. A single equation error correction model suggests that commodity price shocks increase the income share of the top 1, 0.05, and 0.01 percent in the short run. The very top end of the income distribution benefits from commodity booms disproportionately more than the rest of society. The short run effect is mainly driven by wool and mining and not agricultural commodities. A sustained increase in the price of renewables (wool) reduces inequality whereas the same for non-renewable resources (minerals) increases inequality. We expect that the initial distribution of land and mineral resources explains the asymmetric result

The Well-Being of Italians: A Comparative Historical Approach

The paper describes the evolution of the well-being of the Italians during the 150 years since the country's unification. The progress in material standard of living was substantial, with GDP per capita growing 13 times between 1861 and 2010 and hours of work (and hence effort) falling considerably, but was roughly in line with that experienced by most other European countries. By relying on a novel database on household budgets, the paper shows that economic growth was accompanied by a long-run reduction of inequality that appears however to have been reversed in the last two decades. Progress was not limited to the economic domain: educational attainment improved considerably, although less than in other countries; on the other hand, the increase in life expectancy was spectacular and brought Italians to lead the international ranking.Italian history, human progress, income inequality

Chilean Monetary History, 1860-1925. An Overview

Editada en la Fundación Empresa PúblicaLa política monetaria ha sido uno de los tópicos menos comprendidos y más debatidos de la historia económica chilena. La aceptación incondicional de la convertibilidad ha alienado alos historiadores económicos de un debate más amplop respecto de los costes y beneficios de los regímenes cambiarios. Este ensayo estudia el proceso de creación de dinero en Chile y su relación con las regularizaciones al funcionamiento de los bancos. Dadas las características de la economía chlena, se concluye que la adopción del patrón oro no era posible y que los experimentos chilenos con la doctrina de los real bills permitió alcanzar cierta estabilidad financiera.Monetary policy has been one of the least understood and mucho debated topics in Chilean economic history. An ideological commitment to convertibility has alineated economic historian from the larger subjetc of costs and benefits of the exchange regime. This paper studies the process of money creation in Chile and its relationship with banking regulation. Given the characteristics of the Chilean economy, the author concludes that adherence to the gold standard was not possible and that Chilean naive experiments with the real bills doctrine provided the economy witj financial stability.Publicad

Pituophis melanoleucus

Number of Pages: 8Integrative BiologyGeological Science