The Ties that Divide: A Network Analysis of the International Monetary System, 1890-1910
CEPR Discussion paper : n°5129
key currency, international monetary system
This paper provides a new methodology to map international monetary relations in the 19th century. We identify an index of international liquidity and, applying techniques borrowed from formal network analysis (in particular, blockmodelling) we produce a formal ranking of currencies according to their degree of international circulation. The resulting indices are powerful tools to study the logic of the emergence of international currencies, as well as useful controls for cross-section regressions.