THE GOLD STANDARD, GIBSON PARADOX AND THE GOLD STOCK

Authors
DOWD K SAMPSON AA
Citation
K. Dowd et Aa. Sampson, THE GOLD STANDARD, GIBSON PARADOX AND THE GOLD STOCK, Journal of macroeconomics, 15(4), 1993, pp. 653-659
Citations number
18
Categorie Soggetti
Economics
Journal title
Journal of macroeconomics → ACNP
ISSN journal
01640704
Volume
15
Issue
4
Year of publication
1993
Pages
653 - 659
Database
ISI
SICI code
0164-0704(1993)15:4<653:TGSGPA>2.0.ZU;2-2
Abstract
This paper re-examines the influence of the stock of gold and the inte rest rate on the gold-standard price level using the Johansen cointegr ation procedure. It finds that two equilibrium relationships exist bet ween the price level, the stock of gold and the interest rate, and tha t traditional Gibson's paradox equations which look at the influence o f interest on prices but ignore the influence of the stock of gold are misspecified.