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Monetary Policy in the Nordic Countries during the Classical Gold Standard Period: The Wicksellian View

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The Gold Standard Peripheries

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Abstract

In his article ‘The Influence of the Rate of Interest on Prices’, Economic Journal XVII (1907), Knut Wicksell argued that the variations in price level during the classical gold standard were not primarily due to variations in gold supply but, rather, to the interest rate policies followed by the central banks (i.e. discount rate adjustment), and the real disturbances affecting the natural rate of interest. According to Wicksell, price stability required keeping the interest rate controlled by the central bank in line with the natural rate of interest determined by factors outside the control of the central bank.

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Authors
  1. Concepciôn García-Iglesias
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  2. Juha Kilponen
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Editor information

Editors and Affiliations

  1. Department of Economic History, Uppsala University, Sweden

    Anders Ögren (Associate Professor at UCBH) (Associate Professor at UCBH)

  2. Norwegian School of Economics, Norway

    Lars Fredrik Øksendal (researcher affiliated) (researcher affiliated)

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© 2012 Concepciôn García-Iglesias and Juha Kilponen

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García-Iglesias, C., Kilponen, J. (2012). Monetary Policy in the Nordic Countries during the Classical Gold Standard Period: The Wicksellian View. In: Ögren, A., Øksendal, L.F. (eds) The Gold Standard Peripheries. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, London. https://doi.org/10.1057/9780230362314_5

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