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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Princeton University Press, Pages: The Euro experiment and how we don’t know yet if it’s going to work is also an interesting case study, but the author also points out the advantages of the European currency and why it became an alternative to the Dollar so fast. Similar comments in the book are that if other countries during the eicjengreen period had supported the exchange rate of the nation in distress, economic eichengren would not have deteriorated so badly p.

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.

A lot of details, very thorough. As Eichengreen concludes, to understand the present diversified international monetary system, one needs to appreciate its history. You could either raise interest rates, which leads to inflation, or decrease the money supply.

Is it even possible for a coordinated strategy to provide those fixes? The main take-home messages for me were these.

Globalizing Capital: A History of the International Monetary System

SchwartzNational Bureau of Economic Research. 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, eichsngreen to Bretton Woods, and finally to the post period of fluctuating currencies.


The gold standard was first established by accident by Sir Isaac Newton in Again, that grounding is something he warns up front I needed to bring to the table and I didn’t, so I have no one to blame but myself. For instance, the IMF does not seem to have made a big difference in coordinating currency stability, but the US was able abrry achieve it in Europe through large and sustained loans.

On the other hand, governments apparently valued their past reputation more than investors actually cared about. Trade was disrupted, foreign investments were liquidated. The glossary in the back is overly detailed for me, but certainly of help for the average reader.

Prices of currencies were influenced by the principles of supply and demand of the usage of those currencies. Jan 19, John rated it really liked it.

This time, I think a big cspital of it was just that the subject matter is relatively narrow, and much of the mechanistic content is implicit in related issues that Eichengreen doesn’t see fit to explain. Preview — Globalizing Capital by Barry Eichengreen. At times, political instability itself seems to be more influential than either competing policy might be.

Feb 08, Bryce rated it really liked it. The imposition of controls on capital mobility afforded them some leeway to pursue internal objectives without sacrificing badry external objective.

By the mid-1 Eichengreen here traces a history of money from the mids to today. When the era ended, the controls had been eroded by the emergence of liquid international financial markets. That said, I definitely got what I wanted in terms of background and examples on the gold standard for my current project. 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

If you’re at all interest in the international monetary system I highly recommend this book. This was also concurrent with advances in transportation and communication, like steam power and the telegraph. It has become increasingly apparent that one cannot understand the international economy without knowing how its monetary system operates.

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

Coins were made of metals at their exact values, and those values didn’t change substantially as long as the value of the metals didn’t change. This view finds no support in the case of the Federal Reserve system. Since the s, there has been further growth of highly mobile capital flows and a deepening of international capital markets.

The gold standard as an internal check doesn’t work.

Some small open economies have tried a currency-board arrangement as an alternative. View all 3 comments.

The design of a regime must ensure eichengrfen economic relations among nations promote their self-interests. Globalization glutted Europe with metals and increased the scale of international financial trading and investment along with the rest of trade.

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.

Globalizing Capital will become a classic.

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