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. “Eichengreen’s purpose is to provide a brief history of the international monetary system. In this, he succeeds magnificently. Globalizing Capital will become a.

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However, he shows that capital mobility was also high prior to World War I, yet this did not prevent the eichengrefn of fixed exchange rates.

Then gold would flow back out if people can’t afford it. In any event, if the condition existed, it did so only during the five months from October through February It begins in the early s in Europe, and remains focused there and on the United States until more or less the s, at which point it finally expands to discuss Asia and the largest South American economies.

Barry Eichengreen, Globalizing Capital

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 capitak.

Books by Barry Eichengreen.

Features of the gold standard era were the high level of international capital mobility and the freedom from controls of international financial transactions.

Can you imagine the days when the Bank of England sent clipper ships full of bullion to pay its debts to the Dutch? Smaller economies, on the other hand, were tossed to the wind.

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


Account Options Sign in. Gold would flow into a country when the volume of exports exceeds globalizinf volume of imports. Fortuitously, I ended up actually reading it because the narrow subject matter it does tackle is something I needed to learn about for another project.

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. Today pegging exchange rates would require very radical reforms of a sort that governments are understandably reluctant to embrace. It’s ingenious and intellectually appealing, but unfortunately it didn’t explain what happened.

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.

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.

Globalizing Capital: A History of the International Monetary System

Most of t Eichengreen does a great job in explaining this complicated subject. To see what your friends thought of this book, please sign up. Similar comments in the book are that if other countries during the interwar period had supported the exchange rate of the nation in distress, economic conditions would not have deteriorated so badly p.

Aaron Taylor rated it it was amazing Apr 15, You could either raise interest rates, which leads to inflation, or decrease the money supply.

The imposition of controls on capital mobility afforded ylobalizing some leeway to pursue internal objectives without sacrificing the external objective.

My library Help Advanced Book Search. Both of these would curtail sichengreen growth. None of the original solutions, raising interest rates or unemployment, were politically acceptable, and so the exchange rate limitations were abandoned in Eichengreen Limited preview – Jan 30, Noelle rated it liked it. Overall, it seems like there is no ultimately effective way to avoid large fluctuations in currency value.


One side of this more or less make sense to me. The gold standard seems like a bit of harmless lunacy, but I’m also worried about the implications of extreme protectionism, the world splitting into multiple currency blocks, and a complete shuttering of global trade.

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

View all 3 comments. Apr 08, Erin rated it liked it. This, however, had its eichwngreen. The pre-war gold standard, the interwar chaos, the Great Depression, the Bretton Woods system, the emergence of the Euro, the current financial markets, fapital US-China trade imbalances, among others, are all explained in this money saga.

Trivia About Globalizing Capit Then there are cases like Austria at the beginning of the Great Depression, a bank failure that might have been bailed out by other countries to protect the international gold standard if those other countries capitwl not recent factors of a bitter war. Still, it seems a bit odd to me that the preface frames the ups and downs the narrative describes as more or less the outcome of a single class struggle.

They could either let the exchange rate float, and let ‘come what may’, or they could peg their currency to one of the other big currencies.