“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. Eichengreen, B.: Globalizing Capital: a. System. IX, pp. Princeton Univer. US $ Barry Eichengreen at his best: his lat international monetary system.
|Published (Last):||18 January 2004|
|PDF File Size:||16.87 Mb|
|ePub File Size:||5.19 Mb|
|Price:||Free* [*Free Regsitration Required]|
One side of this more or less make sense to me. 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.
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 eichengrsen can be attributed to human caprice.
On the other hand, governments apparently valued their past reputation more than investors actually cared about. Just to grow the money supply in general? The philosopher David Hume first came up with a theory to explain this. I’m rather distressed about the implications. The Canadian banks ran into legal limits themselves, which were then loosened. The gold standard was abandoned in all but name, and currency could ‘float’ within a narrow band of values tied to the US dollar. A History of the International Monetary System.
Fortuitously, I globalizjng up actually reading it because the narrow subject matter it does globalzing is something I needed to learn about for another project. 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.
Account Options Sign in. Eichegnreen we should not forget the context: Second, I got a much clearer idea of what preceded the gold standard and how that eichengreeen occurred.
Globalizing Capital will become a classic. At times, political instability itself seems to be more influential than either competing policy might be. Eichengreen does a great job in explaining this complicated subject.
Thanks for telling us about the problem. The book includes a very useful Glossary that makes the reading much easier. Goodreads helps you keep track of books you want to read. The advantages and fapital of a pegged currency are very well illustrated for the Argentinian case.
Globalizing Capital: A History of the International Monetary System
The story of the book is one of governments constantly feeling pressure to devalue their currency, thus increasing export competitiveness and potentially wage growth. Just a moment while we sign you in to your Goodreads account. Refresh and try again. Monetary union was the quid pro quo. Gold would flow into a country when the volume of exports exceeds the volume of imports.
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.
Its writting is clear, precise and consider the historical aspects of the Monetary Economy pretty well. It isn’t entirely clear to me what the optimal cooperation scenario here with look like or how it would be superior to the absence of a consistent trend; devaluation seems to be a country specific strategy applied to deal with internal problems.
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. Interesting review, but not told in a very engaging way for people that are not economists myself, for example.
MB rated it did not like it Aug 02, Eichengreen’s work demonstrates that insights into the international monetary system and effective principles for governing it can result only if it is seen a historical phenomenon extending from the gold standard period to interwar instability, then to Bretton Woods, and finally to the post period of fluctuating currencies. Unlike other contemporary economists, the author is fair and non-partisan.
References to this book Globalization and History: Can you imagine the days when the Bank of England sent clipper ships full of bullion to pay its debts to the Dutch?
The money supply would rise with a high volume of trade, and inflation would set in, causing the price of goods and services to rise.
Smaller economies, on the other hand, were tossed to the wind.
Globalizing Capital: A History of the International Monetary System
capitzl In addition to the internal forces pushing for a consistent currency value, the big problem today is that extreme currency fluctuations are thought to create exchange rate wars, in which countries try to stay competitive by devaluing to counter devaluations of their trading partners.
Kudos to Barclay’s for educating their clients. Third, the main alternative to the gold standard is exchange rate pegging, which faces the xapital “trying to stop a river with a stick” issue that the gold standard does. The book also convinced gloablizing 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. It’s ingenious and intellectually appealing, but unfortunately it didn’t explain what happened.
The main take-home messages for me were these.
This would deprive countries of gold and further threaten their exchange rates. The gold standard was first established by accident by Sir Isaac Newton in Approximately as dense as the point which expanded into the big bang, but very informative.
I’ll certainly admit that if I had taken the time to globzlizing the macroeconomic concepts involved here, which I have learned at least twice before, I probably would’ve gotten capitzl out of the book. He is a regular monthly columnist for Project Syndicate.
The voters may well favor demand-management approaches to structural alternatives for avoiding financial instability; but this preference has more to do with special-interest politics standing in the way of desirable structural reforms than with sound economic theory.
Now Barry Eichengreen presents a brief, lucid book that tells the story of the eichnegreen financial system over the past years. Nov 05, Nick Geiser rated it it was amazing Shelves: Books by Barry Eichengreen. Jun 07, Ben Newton rated it really liked it. May 21, Paulo O’Brien rated it liked it.