Book contents
- The Cambridge Economic History of the Modern World
- The Cambridge Economic Historyof the Modern World
- The Cambridge Economic History of the Modern World
- Copyright page
- Contents
- Figures
- Tables
- Contributors to Volume II
- Introduction to Volume II
- Part I Regional Developments
- Part II Factors Governing Differential Outcomes in the Global Economy
- 12 Healthy, Literate, and Smart
- 13 Proximate Sources of Growth
- 14 Underlying Sources of Growth
- 15 Underlying Sources of Growth
- 16 Living Standards, Inequality, and Human Development
- 17 Trade and Immigration
- 18 International Finance
- 19 War and Empire
- Index
- References
18 - International Finance
from Part II - Factors Governing Differential Outcomes in the Global Economy
Published online by Cambridge University Press: 03 June 2021
Book contents
- The Cambridge Economic History of the Modern World
- The Cambridge Economic Historyof the Modern World
- The Cambridge Economic History of the Modern World
- Copyright page
- Contents
- Figures
- Tables
- Contributors to Volume II
- Introduction to Volume II
- Part I Regional Developments
- Part II Factors Governing Differential Outcomes in the Global Economy
- 12 Healthy, Literate, and Smart
- 13 Proximate Sources of Growth
- 14 Underlying Sources of Growth
- 15 Underlying Sources of Growth
- 16 Living Standards, Inequality, and Human Development
- 17 Trade and Immigration
- 18 International Finance
- 19 War and Empire
- Index
- References
Summary
In this chapter we survey the history of international finance spanning a century and a half. We start by characterizing capital flows in the long run, organizing our discussion around six facts relating to the volume and volatility of capital flows, measured in both net and gross terms. We then connect up the discussion with exchange rates and monetary policies. The organizing framework for this section is the macroeconomic trilemma. We describe where countries situated themselves relative to the trilemma over time and consider the political economy of their choices. Finally, we study the connections between international finance and economic and financial stability. We present consistent measures of growth and debt crises over the century and a half covered in this chapter and discuss how their incidence is related to those institutional and political circumstances, and, more generally, to the nature of the international monetary and financial regime.
- Type
- Chapter
- Information
- The Cambridge Economic History of the Modern World , pp. 501 - 525Publisher: Cambridge University PressPrint publication year: 2021
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