Taming the Global Financial Cycle. Central Banks as Shock Absorbers in the First Era of Globalization

<div>This is the replication kit for the paper "Taming the Global Financial Cycle. Central Banks as Shock Absorbers in the First Era of Globalization". The abstract of our paper reads as follows: "The
Classical Gold Standard period, with high capital mobility and fixed-exchange
rates, is usually seen as the extreme case of international constraints on
monetary policy. Contrary to this view, we show how central bank balance sheets
offset the effects of international shocks on domestic interest rates. In
contrast, in the USA, a gold standard country without a central bank, the
reaction of money market rates was almost four times stronger than that of
interest rates in countries with a central bank. Our study is based on monthly
balance sheets of all central banks in the world (i.e. 21) over 1891-1913."<br></div>