The record of British and French finance during the Napoleonic wars presents the striking picture of a financially strong nation abandoning the gold standard, borrowing heavily, and generating inflation, while a financially weaker country followed more “orthodox” policies. This paradoxical behavior is explained by Britain's strong credibility that allowed more flexible policies, while France's poor reputation forced reliance on taxation.
No takes yet. Share an insight, caveat, or question.
Bordo et al. (1991) studied this question.
Synapse has enriched 5 related papers. Consider them for comparative context: