“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. Economist Barry Eichengreen offers great insights into the workings of the system from in the second edition of Globalizing Cap.

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Eichengreen Limited preview – Tj rated it it was amazing Dec 02, 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. He is the recipient of a doctor honoris causa from the American University in Paris, and the recipient of the Schumpeter Prize from the International Schumpeter Society.

Thus, the gold standard led to artificially contracting the globallzao, which harmed many groups in it. Amazon Restaurants Food delivery from local restaurants.

Start reading Globalizing Capital on your Kindle in under a minute. When the public-sector globaliza of national income is one-tenth, the burden of economic contraction that in some circumstances is required under the gold standard can be spread across a private sector accounting for 90 percent of national income. Preview — Globalizing Capital by Barry Eichengreen.

The story of the book is one of governments constantly feeling pressure to devalue their globalizaoo, thus increasing export competitiveness and potentially wage growth.


How much more so, it follows, will lack of consensus exist at the international level.

Globalization with Chinese Characteristics

The introduction of capital controls and a drastic decline in capital flows after marked the interwar period. More generally, if globlizao US turns its back lgobalizao the global order, China will be well positioned to take the lead on reforming the rules of international trade and investment.

Buy the selected items together This item: Unimpeded inflows of capital can lead to inflation and outflows to recession. Please be civil and avoid name-calling and ad hominem remarks.

Eichengreen here traces a history of money from the mids to today. Please provide more details about your request. A monetary regime that requires international cooperation for it to be viable will not survive.

Globalizing Capital: A History of the International Monetary System by Barry Eichengreen

For instance, the IMF does not seem to have made a big difference in coordinating currency stability, but the US was able to achieve it in Europe through large and sustained loans. For instance, there was little appreciation that raising domestic interest rates would dampen business investment, leading to a rise in unemployment. Eichengreen asserts that the gold standard persisted because those who did benefit from it – those who could engage in international trade and investment – would keep it, and those who were against it couldn’t do anything about it.

The author demonstrates that the pre World War I gold standard with its currencies pegged to gold was a historically specific institution. In globalizak case, Eichengreen’s analysis is far more detailed than my sketch, and he lays his arguments out very convincingly. The Bretton Woods era began with officially sanctioned capital controls. No trivia or quizzes yet.


What could a country do to prevent this? Fixed exchange rates and unfettered capital mobility, after all, characterized the gold-standard regime. Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.

Globalizing Capital: A History of the International Monetary System

The book includes a helpful glossary of economic terms and the target audience feels to be undergraduate economics majors. He made a mistake in calculating the prices of silver and gold and their ratios in currency, driving silver out of circulation and thus leaving England with a gold-backed currency. By the mid-1 Eichengreen here traces a history of money from the mids to today. Its central bank stood ready to take action to ward off any financial threats to the gold standard.

One of the problems with the narrative rather than mechanistic approach is that it often isn’t clear how much an event is due to fundamental economic circumstances and how much it can be attributed to human caprice. This book is not that, unfortunately.

It’s ingenious and intellectually appealing, but unfortunately it didn’t explain what happened. The implication seems undeniable: I had been hoping for a tight and sharp history, particularly an explanation of the workings of the gold standard, something like an extended profile in “The Economist” magazine.