Money Market Integration in Spain in the Ninetheen Century: The Role of the 1875-1885 Decade

Emma M., Iglesias and J. Carles, Maixé-Altés (2021): Money Market Integration in Spain in the Ninetheen Century: The Role of the 1875-1885 Decade.

Abstract

Are transaction costs and half-lives between two cities the same in both directions in traditional city-based monetary systems? Market conditions and political circumstances may not justify this assumption; and we provide evidence that it does not hold in the 1825-1885 period in Spain. Moreover, we show empirical evidence that market integration in Spain from 1875 to 1885 was a slow process of monetary unification with decreasing transaction costs, and a very inefficient convergence. Therefore, full integration did not happen in the period 1875-1885 and had to wait until mid-1880s, when the Spanish money-market was unified due to financial innovations.

• Item Type: MPRA Paper
• Language: English
• Keywords: Integration of monetary markets; Nineteenth century; Monetary and financial history; Market Convergence and Efficiency; Western Europe; Private Finance, Capital Markets
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E02 - Institutions and the Macroeconomy; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E42 - Monetary Systems ; Standards ; Regimes ; Government and the Monetary System ; Payment Systems; F - International Economics > F0 - General > F02 - International Economic Order and Integration; F - International Economics > F1 - Trade > F15 - Economic Integration; F - International Economics > F3 - International Finance > F31 - Foreign Exchange; F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L10 - General; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations > N13 - Europe: Pre-1913; N - Economic History > N7 - Transport, Trade, Energy, Technology, and Other Services > N73 - Europe: Pre-1913

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