This paper seeks to link the two theories put forward to explain (the consequences of) Spain’s decision not to adopt the gold standard in the late nineteenth century, and does so by comparing the outcomes of short- and long-run approaches. The empirical results obtained from applying an autoregressive distributed lag (ARDL) and vector error correction (VEC) framework are reported. This ARDL and VEC analysis reveals that the expansionary monetary policies implemented had a positive impact on Spain’s economic growth. The exchange rate was a key factor, since it helped improve the terms of trade and promoted exports in the short run. None of these options would have been available under the gold standard system. This paper provides new empirical evidence for the core-periphery debate through an analysis of a peripheral economy, and sheds important new light on the developments in Spain at the time of the classical gold standard.