This Page Intentionally Left Blank Money, History, and International Finance A National Bureau of Economic Research Conference Report Money, History, and International Finance: Essays in Honor of Anna J. Schwartz Michael D. Bordo Editedby The University of Chicago Press Chicago and London MICHAEDL. B O Ris~ pr ofessor of economics at the University of South Carolina and a research associate of the National Bureau of Economic Research. The University of Chicago Press, Chicago 60637 The University of Chicago Press, Ltd., London 0 1989 by the National Bureau of Economic Research All rights reserved. Published 1989 Printed in the United States of America 98 97 96 95 94 93 92 91 90 89 5 4 3 2 1 mThe paper used in this book meets the minimum requirements of the American National Standards Institute for Informational Sciences regarding permanence of paper for printed library materials, ANSI 239.48- 1984. Library of Congress Cataloging-in-Publication Data Money, history, and international finance : essays in honor of Anna J. Schwartz /edited by Michael D. Bordo. p. cm. - (A National Bureau of Economic Research conference report) Bibliography: p. Includes index. ISBN 0-226-06593-6 I. Money-Congresses. 2. Economic history-Congresses. 3. International finance-Congresses. 4. Schwartz, Anna Jacobson. 1. Schwartz, Anna Jacobson. 11. Bordo, Michael D. 111. Conference report (National Bureau of Economic Research) HG203.M69 1989 332.4-dc19 88-39779 CIP National Bureau of Economic Research Officers Richard N. Rosett, chairman Geoffrey Carliner, executive director George T. Conklin, Jr., vice chairman Charles A. Walworth, treasurer Martin Feldstein, president and chief Sam Parker, director offinance and executive officer administrution Directors at Large John H. Biggs David L. Grove Robert T. Parry Andrew Brimmer George Hatsopoulos Peter G. Peterson Carl F. Christ Franklin A. Lindsay Robert V. Roosa George T. Conklin, Jr. Paul W. McCracken Richard N. Rosett Kathleen B. Cooper Leo Melamed Bert Seidman Jean A. Crockett Geoffrey H. Moore Eli Shapiro George C. Eads Michael H. Moskow Harold Shapiro Morton Ehrlich James J. O’Leary Donald S. Wasserman Martin Feldstein Directors by University Appointment Charles H. Berry, Princeton Merton J. Peck, Yale James Duesenberry, Harvard James L. Pierce, CaliJ?ornia,B erkeley Ann F. Friedlaender, Massachusetts Andrew Postlewaite, Pennsylvania Institute of Technology Nathan Rosenberg, Stanford Jonathan Hughes, Northwestern James Simler, Minnesota Saul Hymans, Michigan William S. Vickrey, Columbia J. C. LaForce, California, Los Angeles Burton A. Weisbrod, Wisconsin Marjorie McElroy, Duke Arnold Zellner, Chicago Directors by Appointment of Other Organizations Richard Easterlin, Economic History Eric Kruger, The Conference Board Association Rudolph A. Oswald, American Edgar Fiedler, National Association of Federation of Labor and Congress of Business Economists Industrial Organizations Bruce Gardner, American Agricultural Douglas D. Purvis, Canadian Economics Economics Association Association Robert S. Hamada, American Finance Dudley Wallace, American Statistical Association Association Robert C. Holland, Committee for Charles A. Walworth, American Institute Economic De*ielopment of Certified Public Accountants David Kendrick, American Economic Association Directors Emeriti Moses Abramovitz Frank W. Fetter George B. Roberts Emilio G. Collado Thomas D. Flynn Willard L. Thorp Solomon Fabricant Gottfried Haberler Since this volume is a record of conference proceedings, it has been exempted from the rules governing critical review of manuscripts by the Board of Directors of the National Bureau (resolution adopted 8 June 1948, as revised 21 November 1949 and 20 April 1968). This Page Intentionally Left Blank Contents Fore word ix Martin Feldstein Preface xi Introduction Michael D. Bordo 1 I. HISTORICPAELR SPECTIVES 1. The Contribution of A Monetary History of the United States, 1867-1960 to Monetary History 15 Michael D. Bordo A Note on Anna J. Schwartz’s Contribution to pre-1867 Monetary History: Hugh Rockoff General Discussion 2. Anna Schwartz’s Perspective on British Economic History 79 Forrest H. Capie and Geoffrey E. Wood Comment: David Laidler General Discussion 11. MONETARISPTE RSPECTIVES 3. Money-Income Causality-A Critical Review of the Literature Since A Monetary History 117 Phillip Cagan Comment: Robert H. Rasche General Discussion vii viii Contents 111. INTERNATIONMAOL NETARPYE RSPECTIVES 4. Stability Under the Gold Standard in Practice 163 Allan H. Meltzer and Saranna Robinson Comment: William Poole General Discussion 5. The International Transmission of Inflation Afloat 203 Michael R. Darby and James R. Lothian Comment: Alan C. Stockman General Discussion Anna J. Schwartz: An Appreciation A Life of Scholarship 245 Karl Brunner Collaboration in Economics 247 Milton Friedman Appendiu: Publications of Anna J. Schwartz 25 1 Participants 259 Name Index 263 Subject Index 267