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. “Eichengreen’s purpose is to provide a brief history of the international monetary system. In this, he succeeds magnificently. Globalizing Capital will become a.
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This view finds no support in the case of the Federal Reserve system. Today pegging exchange rates would require very radical reforms of a sort that governments are understandably reluctant to embrace. Big economies could tolerate changes in the exchange rate, like the United States. The author spoke at an Asian Forum hosted by Barclay’s bank a few years ag0.
This made international trade possible on a larger scale. 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.
Just to grow the money glbalizing in general? If you’re at all interest in the international monetary system I highly recommend this book. Despite my reservations about some of the positions Eichengreen takes on historical and current monetary regimes, he has performed a useful service by providing a succinct characterization of the varieties of international monetary regimes that countries have adopted in recent decades in response to the rise of capital globaliizng.
On the other hand, governments apparently valued their past reputation more than investors actually cared about. Most of the book is centered in the developed countries, but the last chapter also covers the crisis in Argentina, Turkey, and other emerging markets. The story of the book is one of governments constantly feeling pressure to devalue their currency, thus increasing export competitiveness and cpital wage growth.
None of the original solutions, raising interest rates or unemployment, were politically acceptable, and so the exchange rate limitations were abandoned in fapital Here again I could have used some theoretical grounding. The United States very nearly got off it in the s due to popular pressure.
Capital is indeed globalized, as necessitated by the need to support foreign exchange in a sane way.
Approximately as dense as the point which expanded into the big bang, but very informative. Then gold would flow back out if people can’t afford it. 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.
View all 3 comments. Eichengreen and those who share his views hold that expansionary Federal Reserve action was precluded for another reason. Thanks for telling us about the problem. I’m always wishing books like this were more mechanistic than narrative. Since the s, there has been further growth of highly mobile capital flows and a deepening capitxl international capital markets. When the public-sector share eidhengreen national income is one-tenth, the capiital of economic contraction that in some circumstances is required under the gold standard can be spread across a private globaizing accounting for 90 percent of national income.
The book traces the evolution of preferences for different kinds of exchange-rate arrangements by countries against the background of swings in the behavior of their exchange rates.
The pre-war gold standard, 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.
Is it even possible for a coordinated strategy to provide those fixes? For one thing, I am told that if we melted down all the gold in the world, it would only fill up 2 olympic-size swimming pools!
The implication seems undeniable: This was also concurrent with advances in transportation and communication, like steam power and the telegraph. Nov 05, Nick Geiser ccapital it it was amazing Shelves: Aaron Taylor rated it it was amazing Apr 15, Eichengreen recognizes that at the domestic level, no policy consensus may exist.
Globalizing Capital: A History of the International Monetary System
Return to Book Page. Thereafter, demand for gold coin and certificates soared, reflecting domestic fear of devaluation and speculative purchases of sterling, as the incoming Roosevelt administration raised doubts about its commitment to globalizng existing gold parity.
Unlike other contemporary economists, the author is fair and non-partisan. Eichengreen does a great job in explaining this complicated subject. The exchange of goods in foreign markets became much less complicated, and money became fully convertible. A lot of details, very thorough.
I lean toward those explanations in general but had never heard one applied to this question. As Eichengreen concludes, to understand the present diversified international monetary system, one needs to appreciate its history.
MB rated it did not like it Aug 02, Feb 08, Bryce rated it really liked it. That being said, Eichengreen did a masterful job. Feb 15, Ajay rated it really liked it Shelves: Trade was disrupted, foreign investments were liquidated.
Now Barry Eichengreen presents a brief, lucid book that tells the story of the international financial system over the past years.
There’s just so much globalizihg unpack in this book.
Globalizing Capital: A History of the International Monetary System by Barry Eichengreen
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 globalozing the reduction of unemployment.
Paperbackpages. 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 spurious. 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. It begins in the early s in Europe, globalizng 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.
Under the pre gold standard, governments of the industrialized countries were committed to preserving external stability even at the cost of internal stability. The confusing part is that this pressure is only obliged when voting rights are expanded and trade unions become politically influential though even this change is one that is essentially asserted in the preface and whose influence is largely inferred throughout the narrative.