Currency-market devaluations: treating gold as a currency

Kunkler, M. (2024) Currency-market devaluations: treating gold as a currency. Applied Economics Letters. pp. 1-5. ISSN 1466-4291 doi: 10.1080/13504851.2024.2302876

Abstract/Summary

The currency market is a relative market, where one currency is priced in terms of another currency. As a consequence, currencies move relative to other currencies so that not all currencies can devalue at the same time. This creates a methodological challenge for measuring devaluations in the currency market as a whole, which may occur due to competitive devaluations, monetary policy coordination, contagion, or other reasons. For example, if there is a coordinated global reflationary policy, what measures the overall currency-market devaluation? In this paper, gold is treated as a currency to create a nominal anchor by which to measure currency-market devaluations, as all the other currencies can devalue relative to gold. In general, there have been three currency-market devaluations since the end of the Bretton Woods international monetary system: 89% between 1972 and 1980; 66% between 2005 and 2012; and 25% between 2019 and 2020.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/114639
Identification Number/DOI	10.1080/13504851.2024.2302876
Refereed	Yes
Divisions	Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
Publisher	Taylor & Francis
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