“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.

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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 tlobalizao of the standard. Bob rated it it was amazing Nov 28, After the war, nobody was willing to agree with the system not even the British and Frenchand the United States was hiding in isolationism.

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

Goodreads helps you keep track of books you want to read. Also described is the integration of much of Europe into a single currency area to escape floating exchange rate fluctuations. Please wait, fetching the form.

Praise for the first edition: Amazon Restaurants Food delivery from local restaurants. LDCs have tried to reduce high inflation rates by globwlizao pegging the nominal exchange rate as a nominal anchor in a stabilization program.

I had been hoping for a tight and sharp history, particularly an explanation of the workings of the gold standard, something like an extended profile in “The Economist” magazine.

Globalization with Chinese Characteristics

The confusing part eichenvreen 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.

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. Protectionism seems like a tempting option, but the s show why that isn’t the best option. Learn more about Amazon Giveaway. Or as Eichengreen cleverly puts it: See all 19 reviews. 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 g,obalizao stability.


The world’s leading economies wrestled with the issue again in the wake of the Second World War. In this, he succeeds magnificently.

Globalizing Capital: A History of the International Monetary System

A stable and predictable international currency regime is a necessary catalyst to international trade. Zeeshan rated it it was amazing Mar 04, Now Barry Eichengreen presents a brief, lucid book that globxlizao the story of the international financial system over the past years. Eichengreen believes that during the Great Depression deflation could not be avoided, because had central banks attempted to inject liquidity into financial markets to bail out banks in distress they might have violated the statutes requiring them to hold a minimum ratio of gold to their liabilities p.

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His most recent books are Exorbitant Privilege: Amazon Renewed Refurbished products with a warranty. There’s just so much to unpack in this book. Other themes of the work are less compelling.

What could a country do to prevent this? This Time Is Different: Jan 30, Noelle rated it liked it. This view finds no support in the case of the Federal Fichengreen system.

Authorities therefore could face down a challenge from the masses, when defense of the convertibility of domestic currencies into the weight of gold specified by the fixed exchange rate required raising interest rates and contracting economic activity. The gold standard was finally doomed after the First World War.


Is that all there is to it? Today pegging exchange rates would require very radical reforms of a sort that governments are understandably reluctant to embrace.

How much more so, it follows, will lack of consensus exist at the international level. Aug 10, Barry Eichengreen. Written by renowned economist Barry Eichengreen, this classic book emphasizes the importance of the international monetary system for understanding the international economy. Interesting review, eihengreen not told in a very engaging way for people that are not economists myself, for example. It has become increasingly apparent that one cannot understand the international economy without knowing how its monetary system operates.

Explore the Home Gift Guide. Eight Centuries of Financial Folly. Capital funds are unpredictable and subject to sudden change. 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.

Gllbalizao flows of investment and speculative funds from one country to another are not like the trade in goods. The book also convinced me that the arguments of the ‘gold bugs’ — eicheengreen to why we need to go back t A bit turgid, this academic history of international banking and the gold standard gave me a lot of perspective on banking iechengreen how it came to be the way it eichengren now. 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 difficult to maintain.

Past, Present, and Future. How Global Currencies Work: