1 - Introduction: the weight of finance in European societies

Summary

The object of this book is to attempt an evaluation of the role of finance in European history from the late nineteenth to the mid twentieth century. It is innovative in the field of financial history by adopting simultaneously a global approach and a comparative approach.

By ‘global approach’ one means that European finance cannot be understood only at the economic level but should also be considered at the social and political levels as well as in the general context of international politics and economics. Thus this book analyses the position of the financial sector in the economies of six European countries by considering various indicators ranging from the share of the sector in the GNP or the workforce to its contribution to economic growth and the effects of state regulation. It then turns to the position of financial elites in society, discussing to what extent financial elites form a distinct business and social elite, an ‘aristocratic bourgeoisie’, enjoying a special social status. The weight of financial interests in the shaping of government policies, in particular economic policies, is also examined, which in turn requires paying attention to such themes as financial lobbying, the possible conflicts of interests between banking and industry, or the role of the central bank. But European finance cannot be considered independently from the rest of the world. Although the well-worked theme of finance and imperialism is not directly addressed in this book the impact of the rise of extra-European financial centres is discussed, in the first place New York, but also the background to the rise of Tokyo and more recently such centres as Hongkong, Singapore, Bahrein or Sydney.