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

The advantages and disadvantages of a pegged currency are very well illustrated for the Argentinian case.

When the public-sector share 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.

The United States very nearly got off it in the s due to popular pressure. Would a hypothetical expansionary monetary policy in to have driven the United States off gold?

Smaller economies, on the other hand, were tossed to the wind. Eichengreen here traces a history of money from the mids to today. Tom rated it liked it Feb 24, Since the s, there has been further growth of highly mobile capital flows and a deepening of international capital markets. For the United States and Japan the shift toward flexible exchange rates since appears sustainable, and it gloablizing likely lead smaller countries globalixing the Western Hemisphere and Asia to tie their currencies to that of their larger neighbor.

Globalizing Capital

Other editions – View all Globalizing Capital: Throughout, Eichengreen stresses the crucial role of international cooperation in preserving monetary regimes. Forces undermining capital controls overwhelmed efforts eichebgreen governments to manage their currencies.

The introduction of capital controls and a drastic decline in capita, flows after marked the interwar period. The last section of the book discusses the current, free-floating and uncoordinated system of free trade and fast finance.


Lists with This Book. I’m always wishing books like this were more mechanistic than narrative. Want to Read Currently Reading Read.

Captal books include Globalizing Capital: Since World War I, however, universal suffrage and the rise of a politically robust labor movement have constrained the ability of government authorities to elevate external over internal stability. The author spoke at an Asian Forum hosted by Barclay’s bank a few years ag0. The Bretton Woods era began with officially sanctioned capital controls.

Unimpeded inflows of capital can lead to inflation and outflows to gglobalizing. To see what your friends thought of this book, please sign up. 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.

Globalizing Capital: A History of the International Monetary System

Feb 15, Ajay rated it really liked it Shelves: Most of capitap Eichengreen does a great job in explaining this complicated subject. In any event, if the condition existed, it did so only during the five months from October through February This system eicnengreen worked fairly well for about thirty years, until the disastrous war in Vietnam, where the US overspent on both domestic programs and military expenditure, leading to inflation.

Refresh and try again. 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. Globalizing Capital will become a classic. It took me a while to read it because I had to read it in small bites to keep everything from blurring together.

Because banks cxpital little encouragement to borrow from the Reserve banks, there was a shortage of eligible bills. This would deprive countries of gold and further threaten their exchange rates. That being said, Eichengreen did a masterful job. This view finds no support in the case of the Federal Reserve system.


Nevertheless, the book provides an excellent overview of major developments that forged the modern global monetary system. 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.

Instead, speculators could commit arbitrage by buying gold where it was cheaper due to a globlizing in the exchange rate for whatever reasonand selling it where it was more expensive. 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.

I wish some of these things had just been explained briefly; obviously, a technical audience would not have found that necessary, but for me a little bit of that would have made the preponderance of examples go a lot farther.

Barry Eichengreen, Globalizing Capital

The gold standard limited the growth of the money supply and thus prevented both some amount of secular growth in the economy and monetary policy to address recessions. Today pegging exchange rates would require very radical reforms of a sort that governments are understandably reluctant to embrace. Eichenggeen monetary regime that requires international cooperation for it to be viable will not survive.

An excellent, clearly-written history of 20th century international finance and introduction to international finance for the novice reader. Not only the U. Can you imagine the days when the Bank of England sent clipper ships full of bullion to pay its debts to the Dutch?

His is a political economy view, but I believe the argument also holds true on economic grounds.