First published more than a decade ago, Globalizing Capital remains an indispensable Written by renowned economist Barry Eichengreen, this classic book. Globalizing Capital has ratings and 18 reviews. Barry Eichengreen hace uno de los recuentos más completos sobre la evolución del sistema monetaria. Globalizing Capital: A History of the. International Monetary A major theme of Barry Eichengreen’s accessible history of the internationa etary system since.
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Jan 19, John rated it really liked it. Bob rated bsrry it was amazing Nov 28, Will demand a second reading shortly, but the first reading nonetheless added greatly to my understanding of the tides of global finance throughout the 20th century and to the ways in which international economic and monetary trends impacted the politics of the 20th century.
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Other books include Globalizing Capital: By the mid-1 Eichengreen here traces a history of money from the mids to today. Princeton University Press, Pages: Prices of currencies were influenced by the principles of supply and demand of the usage of those currencies. Williamson Limited preview – capitall View all 3 comments. Can you imagine the days when the Bank of England sent clipper ships full of bullion to pay its debts to the Dutch?
Instead, speculators could commit arbitrage by buying gold where it was cheaper due to a decline in the exchange rate for whatever reasonand selling it where it was more expensive. Fernando Espinosa rated it liked it Jan 10, Globalization glutted Europe with metals and increased the scale of international financial trading and investment along with the rest of trade.
The gold standard was abandoned in all but name, and currency could ‘float’ within a narrow band of values tied to the US dollar. Hume’s theory relied in government micromanagement of foreign trade and massive transfers of gold in foreign accounts, neither of which happened. Even after these gold losses, however, the gold-reserve ratio against Federal Reserve notes and deposits was still at least 50 percent above the legally required minimum.
Usually, the eichengredn is that I want mechanistic hypotheses that the available data can’t evaluate.
Brilliant, accessible review of global monetary history since the late 19th century. If not, what would be the broader goal of a coordinated strategy? It begins in the early s in Europe, and remains focused there and on the United States until more or less the s, at which point it finally expands to discuss Asia and the largest South American economies.
The design of a regime must ensure that economic relations among globalkzing promote their self-interests. Eichengreen recognizes that at the domestic level, no policy consensus may exist. The bank provided attendees with complimentary copies of books written by conference calital. My best guess is that the gold standard prevents speculation, a mechanism for financial markets to cause otherwise-unnecessary panics and crises in the market. Eichengreen analyzes the shift from pegged to floating exchange rates in the s and ascribes that change to the growing capital mobility that has made pegged rates difficult to maintain.
This time, I think a big part of it was just that the subject matter is relatively narrow, and much of the mechanistic content is implicit in related issues that Eichengreen doesn’t see fit to explain. Second, I got a much clearer idea of what preceded the gold standard and how that transition occurred.
Fortuitously, I ended up actually reading it because the narrow subject matter it does tackle is something I needed to learn about for another project. What are the pros and cons of a shared global currency analogous to the Euro?
References to this book Globalization and History: Thus, the gold standard led to artificially contracting the economy, which harmed many groups in it. His is a political economy view, but I believe the argument also holds true on economic grounds. If you’re at all interest in the international monetary system I highly recommend this book. Lists with This Book. The confusing part is that this pressure is only obliged when voting rights are expanded and trade unions become eichenggeen influential though even this change is one that is essentially asserted in the preface and whose influence is largely inferred throughout the narrative.
Jul 09, Adam rated it liked it Shelves: No wonder fapital is called the “dead science”. The story of the book is one of governments constantly feeling pressure to devalue their currency, thus increasing export competitiveness and potentially wage growth. You could golbalizing raise interest rates, which leads to inflation, or decrease the money supply.
I initially shelved this eichengrfen read on the hoped-for assumption that it was a more ambitious book than it is. Protectionism seems like a tempting option, but the s show why that isn’t the best option.
That said, I definitely got what I wanted in terms of background and examples on the gold standard for my current project. He is a fellow of the American Academy of Arts and Sciences class of A History of the International Monetary System.
On the other hand, governments apparently valued their past reputation more than investors actually cared about. It has become increasingly apparent that one cannot understand the international economy without knowing how its monetary system operates. Capital controls freed the authorities from these unwanted consequences, but because controls are never watertight, and eventually became unenforceable, they were no answer to the weakened commitment in modern societies to pegged exchange rates.