First published more than a decade ago, Globalizing Capital remains an indispensable Written by renowned economist Barry Eichengreen, this classic book. Globalizing Capital has ratings and 18 reviews. Barry Eichengreen hace uno de los recuentos más completos sobre la evolución del sistema monetaria. Globalizing Capital: A History of the. International Monetary A major theme of Barry Eichengreen’s accessible history of the internationa etary system since.

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Usually, the problem is that I want mechanistic hypotheses that the available data can’t evaluate. Fortunately, the author provides a very useful glossary of key terms and many footnotes but it takes quite a bit of attention to wade through this stuff.

The problem, even if this were a true constraint on monetary expansion which there is reason to doubtwas eliminated by the Glass-Steagall Act of 27 Februarywhich permitted government bonds in Federal Reserve portfolios to serve as collateral against the note issue.

Nevertheless, the book provides an excellent overview of major developments that forged the modern global monetary system. The gold standard as an internal check doesn’t work.

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

Eicnengreen to Read Currently Reading Read. Capital controls freed the authorities from these unwanted consequences, but because controls are never watertight, and eventually became unenforceable, they were no answer to the weakened commitment in modern societies to pegged exchange rates.

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. What are the pros and cons of a shared global currency analogous to the Euro? No trivia or quizzes yet. Its writting is clear, precise and consider the historical aspects of the Monetary Economy pretty well.


Mark Pasewark rated it liked it Sep 03, Professor Eichengreen is the convener of the Bellagio Group of academics and capiital officials and chair of the Academic Advisory Committee of the Peterson Institute of International Economics.

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. By Januarythanks to gold inflows after Augustthe stock exceeded its initial level. 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.

I read this book so I could be a little better informed when talking about the gold standard. I almost wish he’d written a series of books covering each of the chapters in this book.

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.

At times, political instability itself seems to be more influential than either competing policy might be. Eichengreen here traces a history of money from the mids to today. Then gold would flow back out if people can’t afford it. 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 globaliziny to maintain.

My best guess is that the gold standard prevents speculation, a mechanism for financial markets to cause otherwise-unnecessary panics and crises in the market. Eichengreen analyzes the shift from pegged to floating exchange rates in the s and ascribes that change to the growing elchengreen mobility that has made glpbalizing rates eichengren to maintain. Is it even possible for a coordinated strategy to provide those fixes?


Globalizing Capital: A History of the International Monetary System

What isn’t as obvious to me is who the strict sacrifices made to uphold the gold standard are meant to please. After the war, nobody was willing to agree with the system not even the British and Frenchand the United States was hiding in isolationism. The gold standard was finally doomed after the First World War.

The gold standard was abandoned in all but name, and currency could ‘float’ within a narrow band of values tied to the US dollar. You could either raise interest rates, which leads to inflation, or decrease the money supply.

Under the pre gold standard, governments of the industrialized countries were committed to preserving external stability even at the cost of internal stability. Paperbackpages. Most of t Eichengreen does a great job in explaining this complicated subject.

There is clearly a collective action problem at work in the system. On the Verge of a Big Bang? SchwartzNational Bureau of Economic Research.

No wonder economics is called the “dead science”. Throughout, Eichengreen stresses the crucial cpital of international cooperation in preserving monetary regimes. Eichengreen recognizes that at the domestic level, no policy consensus may exist. The answer is no, according to the historical record.

Williamson Limited preview – Can you imagine the days when the Bank of England sent clipper ships full of bullion to pay its debts to the Dutch? However, he shows that capital mobility was also high prior to World War I, yet this did not prevent the maintenance of fixed exchange rates. Zeeshan rated it it was amazing Mar 04,

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