POST-CLASSICAL DEVELOPM EN T OF TH E MONE T A R Y ASPECTS OF TH E T H E O R Y OF IN TE R
N ATION AL PR IC E R ELA TIO N SH IPS: 1848-1918
1 . T h e C o n t r o v e r s y c o n c e r n i n g t h e G o ld D i s c o v e r i e s o f 1848-1851
About the middle of the nineteenth century the economic structure all over the world was affected by a series of events among which were the new discoveries of gold in California (1848) and in Australia (1851). The opening up of fresh sources of gold in those countries opened a new chapter in the world's monetary history, because it made an international gold standard possible and, moreover, stimulated theoretical speculations. The participants in the controversy that ensued and the economists whose writings are examined in the latter part of this chapter greatly forwarded the study of the monetary aspects of the theory of international price relationships.