Blocs, zones and bands: International monetary history in light of recent theoretical developments

Trends in international finance in recent decades have inspired considerable research on bloc- and band-based international monetary arrangements. From this literature have emerged models providing the basis for much recent work in international monetary economics. To date, however, their application to historical experience hers been rare. We therefore highlight parallels between modern-day target zones on the one hand and the classical and inter-war gold standards and Bretton Woods System on the other. Ne suggest that bloc-based international monetary arrangements are in fact an historical commonplace, they have been the rule rather than the exception.