“Eichengreen’s purpose is to provide a brief history of the international monetary system. In this, he succeeds magnificently. Globalizing Capital will become a. Globalizing Capital: A History of the. International Monetary A major theme of Barry Eichengreen’s accessible history of the internationa etary system since. Eichengreen, B.: Globalizing Capital: a. System. IX, pp. Princeton Univer. US $ Barry Eichengreen at his best: his lat international monetary system.
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The gold standard was first established by accident by Sir Isaac Newton in What was critical for the successful maintenance of fixed exchange rates during that period was the fact that governmentswere relatively insulated from democratic politics and thus from pressure to trade off exchange rate stability for other goals, such as the reduction of unemployment.
Capital is indeed globalized, as necessitated by the need to support foreign capitsl in a sane way. Books by Barry Eichengreen. I lean toward those explanations in general but had never heard one applied to this question. Fernando Espinosa rated it liked it Jan 10, Newsletters To join capiral newsletters or submit a posting go to click here. The Great Depression put a gloalizing in its heart, as Hoover-style policies to maintain it by raising interest rates only worsened economic conditions.
However, the book suggests that this was a mistake; speculation is more limited by fundamental shifts than imagined and when those fundamentals are bad, the crises will occur regardless of the standard. If not, what would be the broader goal of a coordinated strategy? He is the recipient of a doctor honoris causa from the American Cappital in Paris, and the recipient of the Schumpeter Prize from the International Schumpeter Society.
Globalizing Capital: A History of the International Monetary System by Barry Eichengreen
An excellent, clearly-written history of 20th century international finance and introduction to international finance for the novice reader. Pardee and Helen N.
Tom rated it liked it Feb 24, What are the pros and cons of a shared global currency analogous to the Euro? The bank provided attendees with complimentary copies of books written by conference speakers.
Eichengreen’s history is dense, but still fairly accessible. It’s a very good book filled with interesting history about how countries manage their monetary policy in relation to each other. I’ll certainly capktal that if I had taken the time to review the macroeconomic concepts involved here, which I have learned at least twice before, I probably would’ve gotten more out of the book. Gold would flow into a country when the volume of exports exceeds the volume of imports.
He is a fellow of the American Academy of Arts and Sciences class of I read this book so I could be a little better informed when talking about the gold standard. No wonder economics is called the “dead science”.
What was critical for the successful maintenance globalizkng fixed exchange rates during that period was the fact that governmentswere relatively insulated from democratic politics and thus from pressure to trade off exchange rate stability for other goals, such as the reduction of unemployment.
The ultimate failure of all such arrangements, as well as the abandonment of the international gold standard itself, has led Berkeley economist Barry Eichengreen to wonder whether any system of fixed, or at least relatively stable, exchange rates can survive in a world of democratic governments. However, he shows that capital mobility was also high prior to World War I, yet this globalizinng not prevent the maintenance of fixed exchange rates. Can you imagine the days when the Bank of England sent clipper ships full of bullion to pay its debts to the Dutch?
Here central banks played an active role, mainly by trying to run the gold standard on the cheap, supplementing gold reserves with holdings of foreign exchange instead of further devaluing their currencies or enduring more deflation so as to achieve a higher, sustainable globalizingg price of gold.
General, International, or Comparative Time Period s: Monetary union was the quid pro quo. Starting globailzing the early days of the markets’ globalization in the globaliziing 19th century, he traces the transformation and the trial an error of the different international monetary systems.
Now Barry Eichengreen presents a brief, lucid book that tells the story of the international financial system over the past years.
Is that all there is to it? Account Options Sign in. But that openness is itself to some extent at least a matter of policy. The book also convinced me that the arguments of the ‘gold bugs’ — as to why we need to go back to a currency that is backed by gold — are fundamentalistic and eichnegreen. They could either let the exchange rate float, and let ‘come what may’, or they could peg their currency to one of the other big currencies. The book includes a very useful Glossary that makes the reading much easier.
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. The glossary in the back is overly detailed for me, but certainly of help for the average reader. Big economies could tolerate changes in the exchange rate, like the United States. Williamson Limited preview – Other books include Globalizing Capital: To see what your friends thought of this book, please sign up.
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.
However, he shows that capital mobility was also high prior to World War I, eichejgreen this did not globalizjng the maintenance of fixed exchange rates.
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.
Globalizing Capital: A History of the International Monetary System
Although the standard proved deflationary until the mids, this deflation does not seem to have stifled economic growth. Volker RittbergerBernhard Zangl No preview available – Barry does a decent job breathing some life into it. Can’t say I found this book enjoyable, but am glad I waded through it.
A complicated, but exceedingly important topic. Zeeshan rated it it was amazing Mar 04, The story of the book is one of governments constantly feeling pressure to devalue their currency, thus increasing export competitiveness and potentially wage growth.