“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 pre-war gold globalizijg, the interwar chaos, the Great Depression, the Bretton Woods system, the emergence of the Euro, the current financial markets, the US-China trade imbalances, among others, are all explained in this money saga. Here central banks played an active role, mainly by trying to run the gold standard on the cheap, supplementing gold reserves with holdings of capitsl exchange instead of further devaluing their currencies eichengreeh enduring more deflation so as to achieve a higher, sustainable relative price of gold.
Hume’s globallzing relied in government micromanagement of foreign trade and massive transfers of gold in foreign accounts, neither of which happened. There’s just so much to unpack in this book. Usually, the problem is that I want mechanistic hypotheses that the available data can’t evaluate.
Protectionism seems like a tempting option, but the s show why that isn’t the best option. Lists with This Book. A History of the International Monetary Systemsupplies a negative answer. The glossary in the back is overly detailed for me, but certainly of help for the average reader. Volker RittbergerBernhard Zangl No preview available – Just to grow the money supply in general?
Monetary union was the quid pro quo. The Canadian banks ran into legal limits themselves, which were then loosened.
Barry Eichengreen, Globalizing Capital
Although the standard proved deflationary until the mids, this deflation does goobalizing seem to have stifled economic growth. Eric rated it really liked it Jun 30, The gold standard was finally doomed after the First World War. Investors who own debt sufficient to see the value of that debt diminished by inflation and globaliziny by deflation.
This made international trade possible on a larger scale. A lot of details, very thorough. His most recent books are Exorbitant Privilege: Kudos to Barclay’s for educating their clients. Eichengreen’s history is dense, but still fairly accessible. The philosopher David Hume first came up with a theory to explain this.
Nevertheless, the book provides an excellent overview of major developments that forged the modern global monetary eichengrern.
Globalizing Capital: A History of the International Monetary System
In any case, Eichengreen’s analysis is far more detailed than my sketch, and he lays his arguments out very convincingly. References to this book Globalization and History: Eichengreen’s work demonstrates that insights into the international monetary system and effective principles for governing it can result only if it is seen a historical phenomenon extending from the gold standard period to interwar instability, then to Bretton Woods, and finally to the post period of fluctuating currencies.
The implication seems undeniable: 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. Unlike other contemporary economists, the author is fair and non-partisan.
Globalizing Capital is intended not only for economists but also for a general audience of historians, political scientists, professionals in government and business, and anyone with a broad interest in international economic and political relations. Eichengreen’s globaliizing demonstrates that insights into the international monetary system and effective principles for governing it can result only if it is seen a historical phenomenon extending from the gold standard period to interwar instability, then to Bretton Woods, and finally to the post period of fluctuating currencies.
Jan 30, Noelle rated it liked it. The exchange rate reserve as an external check is equally ineffective. Now Barry Eichengreen presents a brief, lucid book that tells the story of the international financial system over the past years.
It’s a very good book filled with interesting history about how countries manage their monetary policy in relation to each other. Elaborating a thesis put forth by Karl Polanyi inEichengreen argues that modern democratic governments are bound to yield to pressures eichengeen pursue goals, such as the avoidance of cyclical unemployment, that conflict with the maintenance of fixed or pegged exchange rates.
The eichengteen seems undeniable: Then gold would flow back out if people can’t afford it.
Globalizing Capital is intended not only for economists but also for a general audience of historians, political scientists, professionals in government and business, and anyone with a broad interest in international economic and political relations. Excellent book for Monetary Economy fans.
From the beginning of our history tomost of the European world operated on a gold-backed currency. This, however, forced them to follow the monetary policies of the other country, with sometimes disastrous results see: This, however, had its costs. Interesting review, but not told in a very engaging way for people that are not economists myself, for example. Levels of international trade grew to unprecedented levels, in proportion and in scale.
The Canadian case is again relevant here, for Canada had little difficulty maintaining its gold standard until while avoiding financial crises without the help of a central bank, even while experiencing massive capital inflows. I’m rather distressed about the implications. Want to Read Currently Reading Read. Is it even possible for a coordinated strategy to provide those fixes? Eichengreen Limited preview – This cartel-like arrangement could only work so long as creditor central banks resisted the temptation to cash in their foreign exchange holdings.
But we should not forget the context: Then there are cases like Austria at the beginning of the Great Depression, a bank failure that might have been bailed out by other countries to protect the international gold standard if those other countries were not recent factors of a bitter war.