The end of silver as a unit of account
From VoxEU.org: Recent Articles
May 17, 2017 - 8:00pm
There has been speculation that the dollar may soon be displaced by the euro or renminbi as the primary international currency. This column examines the demise of silver-based monetary standards in the 19th century to explore price dynamics when a money ceases to function as a global unit of account. According to new data on the historical prices of agricultural commodities, silver ceased functioning as a global price anchor in the mid-1890s. Over the same period, the volatility of agricultural commodity prices also declined.
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