“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.

Author: Shakasa Doujora
Country: Qatar
Language: English (Spanish)
Genre: Marketing
Published (Last): 19 January 2013
Pages: 433
PDF File Size: 9.52 Mb
ePub File Size: 13.26 Mb
ISBN: 546-8-42357-975-4
Downloads: 59456
Price: Free* [*Free Regsitration Required]
Uploader: Fele

The dour conclusion of “Globalizing Capital,” it seems to me, is that you-can’t-have-your-cake-and-eat-it-too, a problem that is particularly acute with Americans.

The brief and volatile period following the First World War when exchange rates were allowed to float spooked treasury officials and politicians for at least a generation. The Bretton Woods era began with officially sanctioned capital controls.

In this, he succeeds magnificently. Add both to Cart Add both to List.

The implication seems undeniable: Please be civil and avoid name-calling and ad hominem remarks. Learn more about Amazon Prime. Some small open economies have tried a currency-board arrangement as an alternative.

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

There is clearly a collective action problem at work in the system. Amazon Second Chance Pass it on, trade it in, give it a second life.

How Global Currencies Work: Jan 30, Noelle rated it liked it. Jan 19, John rated it really liked it. Second, and related to the first, the author notes that workers and labor groups had limited political power during this period and thus could not put pressure on governments to take policy actions that staved off unemployment rather than currency devaluation, even if they had understood the relationship.


Most interesting to me is the duality post Bretton Woods of the European approach to exchange rates attempt to implement fixed rate and eventually a common currency versus the Anglo approach fully floating currencies, no intervention. Even for those who are familiar with macroeconomics and monetary policies, this globxlizao is a deep, slow read.

Investors who own debt sufficient to see the value of that debt diminished by inflation and augmented by deflation. 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.

After globalizap it for a history class in the first semester first edition in portuguese I read it again in the ejchengreen semester 2nd ed in english and it made even more sense. Eichengreen demonstrates that the international monetary system can be understood and effectively governed only if it is seen as a historical phenomenon extending from the period of the gold standard to today’s world of fluctuating prices.

Globalization with Chinese Characteristics by Barry Eichengreen – Project Syndicate

Customers who bought this item also bought. 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.

See all 19 reviews. Other books include Globalizing Capital: And, in a sense, Eichengreen seems to argue that world political and economic leaders have been searching in vain for a full century now for a system that worked as well as the gold standard, at least from the perspective of promoting trade, stable exchange rates and capital globlaizao.


Globalization with Chinese Characteristics

Pardee and Helen N. Once the macroeconomic indicators hinted that a currency would need to be devalued, capital flight out of the country and currency was the response, accelerating the devaluation that investors feared and the governments were increasingly unable to counteract.

If a currency looked overvalued and devaluation against gold appeared likely, foreign capital would flood into the country anticipating a rise in domestic interest rates to defend the currency. Forces undermining capital controls overwhelmed efforts of governments to manage their currencies.

Just as gold losses in to did not force the United States to devalue, had they occurred in to in response to a hypothetical monetary expansion, they also would not wichengreen done so.

None of the original solutions, raising interest rates or unemployment, were politically acceptable, and so the exchange rate limitations were abandoned in Explore the Home Gift Guide. For instance, the IMF does not seem to have made a big difference in coordinating currency stability, globallizao the US was able to achieve it in Europe through large and sustained loans. Volker RittbergerBernhard Zangl No preview available –