Norges Bank

Bicentenary project, Working Paper

Letting the anchor go: Monetary policy in neutral Norway during World War I

Author:
Monica Værholm and Lars Fredrik Øksendal
Series:
Working Paper
Number:
28/2010

Introduction
For later generations, August 1914 has become a watershed in monetary history. In a matter of days, the belligerent and neutral countries of Europe alike suspended the gold standard. The international monetary regime that had served the world economy for close to four decades was no more. Everywhere domestic fiat money became the order of the day. Even more importantly, the war brought a fundamental change in the priorities of monetary policy: National objectives triumphed over monetary stability.

 

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ISSN 1502-8190 (online)

Published 21 December 2010 09:00
Published 21 December 2010 09:00