“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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Eichengreen Limited preview – SchwartzNational Bureau of Economic Research. 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. Is it possible to have a stable exchange rate regime and high capital mobility, combining to promote international trade and global economic growth, the proverbial rising-tide-that-lifts-all-boats?

Get to Know Us. Eichengreen makes frequent allusion to the fact that countries could easily devalue their currency without setting off the spiral of exchange rate drops if they just did it together, but apparently that has essentially never happened.

Registration is free and requires only your email address. Taylor Daily rated it really liked it Aug 22, 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.

He is a fellow of the American Academy of Arts and Sciences class of Mark Pasewark rated it liked it Sep 03, Please log in or register to continue. Bob rated it it was amazing Nov 28, Newly empowered labor unions and worker-friendly political parties began to flex their muscle, fighting hard to keep interest rates low and social benefits flowing from the central government, actions that were almost certain to lead to a weakened currency on the global market.

Because banks had little encouragement to borrow from the Reserve banks, there was a shortage of eligible bills. Globalizing Capital shows how these and other recent developments can be put in perspective only once their political and historical contexts are understood.


Trade was disrupted, foreign investments were liquidated. The book includes a helpful glossary of economic terms and the target audience feels to be undergraduate economics majors. This work is extremely well referenced with a truly astounding number of sources, both in the footnotes and in the bibliography at the end. Nov 05, Nick Geiser rated it it was amazing Shelves: However I guess this is part of the story. Refresh and try again.

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

The gold standard was an “accident of history” according to the author, the result of England’s unilateral decision to adopt only gold convertibility for the pound in the early nineteenth century. Pardee and Helen N. Businesses, due to the higher interest rates, would be unable to earn credit and debtors have to pay more interest on their loans.

Globalizing Capital will become eichenbreen classic. 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.

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 eichegnreen so badly p. Thus, the gold standard led to artificially contracting the economy, which harmed many groups in it. Eichhengreenthe world’s leading economies had converged on a gold standard. There was a problem filtering reviews right now.

However, he shows that capital mobility was also high prior to World Eichegnreen I, yet this did not prevent the maintenance of fixed exchange rates. Enter your password to confirm. It is accessible enough for any educated layman, although the writing at times is densely academic.

Globalization with Chinese Characteristics by Barry Eichengreen – Project Syndicate

The book also convinced me 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. References to this book Globalization and History: How Global Currencies Work: These funds make the maintenance of fixed exchange rates virtually impossible. Barry does a decent job breathing some life into it.


I read this book so I could be a little better informed when talking about the gold standard. 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.

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. Most of the book is centered in the developed countries, but the last chapter also covers the crisis in Argentina, Turkey, and other emerging markets.

Globalization with Chinese Characteristics

The exchange rate reserve as an external check is equally ineffective. From the beginning of our history tomost of the European world operated on a gold-backed currency. Amazon Second Chance Pass it on, trade it in, give it a second life. Cooper, Foreign Affairs “Praise for the first edition: 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. Other editions – View all Globalizing Capital: Features of the gold globalziao era were the high level of international capital mobility and the freedom from controls of international financial transactions.

In globxlizao, by the spring of foreign claims against U. By Januarythanks to gold inflows after Augustthe stock exceeded its initial level. The last section of the book discusses the current, free-floating and uncoordinated system of free trade and fast finance. The gold standard is not some universal panacea, as the goldbugs would have it, but an accident of historical circumstances which benefited the very few at the expense of many.

Is that all there is to it?

Hume’s theory relied in government micromanagement of foreign trade and massive transfers of gold in foreign accounts, neither of which happened.