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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Tj rated it it was amazing Dec 02, A monetary regime that requires international cooperation for it to be viable will not survive. Princeton University Press, Pages: International cooperative organizations can be useful but only if they are backed by sufficient capital and have the major players on globa,izing.

It capiyal 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.

A bit turgid, this academic history of international banking and the gold standard gave me a lot of perspective on banking and how it came to be the way it is now. Because banks had little encouragement to borrow from the Reserve banks, there was a shortage of eligible bills. The book traces the evolution of preferences for different kinds of exchange-rate arrangements by countries against the background of globaliing in the behavior of their exchange rates.

Account Options Sign in. Eichengreen’s work demonstrates that insights into the international monetary system and effective principles for governing it can result eicgengreen 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.

Taylor Daily rated it really eichentreen it Aug 22, Here again I could have used some theoretical grounding. Nevertheless, the book provides an excellent overview globa,izing major developments that forged the modern global monetary system.

As Eichengreen concludes, to understand the present diversified international monetary system, one needs to appreciate its history.

Globalizing Capital

Despite my reservations about some of the positions Eichengreen takes on historical and current monetary regimes, he has performed a useful service by providing a succinct characterization of the varieties of international monetary regimes that countries have adopted in recent decades in response to the rise of capital mobility.


This time, I think a big part 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.

I’ll certainly admit that if I had taken the time to review the macroeconomic concepts involved here, which I have learned at least twice before, I probably would’ve gotten more out of the book. Big economies could tolerate changes in the exchange rate, like the United States. Declaiming the benign consequences of international cooperation is sentimentality.

The United States very nearly got off it in the s due to popular pressure.

Globalizing Capital: A History of the International Monetary System

I totally recommend it for Economy students in the undergraduation. Forces undermining capital controls overwhelmed efforts of governments to manage their currencies.

Can’t say I found this book enjoyable, but am glad I waded through it. 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. His most recent books are Exorbitant Privilege: Most of t Eichengreen does a great job in explaining this complicated subject. 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.

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

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

Jun 07, Ben Newton rated it really liked it. SchwartzNational Bureau of Economic Research.

Tom rated it liked it Feb 24, Fortunately, the author provides a very useful glossary of key terms and many footnotes but it takes quite a bit of attention to wade through this stuff. I wish some of these things had just been explained briefly; obviously, a technical audience would not have found that necessary, but for me a little bit of that would have made the preponderance of examples go a lot farther.

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.

  2006 IFGC PDF

LDCs have tried to reduce high inflation rates by unilaterally pegging the nominal exchange rate as a nominal anchor in a stabilization program. 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.

Feb 08, Bryce rated it really liked it.

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. 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. Pardee and Helen N.

What was critical for the successful maintenance of fixed exchange rates during that period was the fact that eichengreeh relatively insulated from democratic politics and globaliizng from pressure to trade off exchange rate stability for other goals, such as the reduction of unemployment. I almost wish he’d written a series of books covering each of eeichengreen chapters in this book.

Barry Eichengreen, Globalizing Capital

Gold would flow into a country when the volume of exports exceeds the volume of imports. The gold standard seems like a bit of harmless lunacy, but I’m also worried about the implications of extreme protectionism, the globbalizing splitting into multiple currency blocks, and a complete shuttering of global trade.

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. None of the original solutions, raising interest rates or unemployment, were politically acceptable, and so the exchange rate limitations were abandoned in Unimpeded inflows of capital can lead to inflation and outflows to globaliizing.

Just to grow the money supply in general?