Globalizing Capital: A History of the International Monetary System

By Barry Eichengreen | Go to book overview

CHAPTER THREE
Interwar Instability

The term “The Gold Standard” embodies a fallacy, one of the
most expensive fallacies which has deluded the world. It is the
fallacy that there is one particular gold standard, and one only. The
assumption that the widely divergent standards of currency
masquerading under the name of the gold standard are identical
has recently brought the world to the verge of ruin.

(Sir Charles Morgan-Webb, The Rise and Fall of the Gold Standard)

In the previous chapter we saw how the prewar gold standard was supported by a particular set of economic and political circumstances specific to that time and place. Interwar experience makes the same point by counterexample. Sterling, which had provided a focal point for the harmonization of policies, no longer enjoyed a favored position in the world economy. Britain's industrial and commercial preeminence was past, the nation having been forced to sell off many of its foreign assets during World War I. Complementarities between British foreign investment and exports of capital goods no longer prevailed to the extent that they had before 1913. Countries like Germany that had been international creditors were reduced to debtor status and became dependent on capital imports from the United States for the maintenance of external balance.

With the spread of unionism and the bureaucratization of labor markets, wages no longer responded to disturbances with their traditional speed.1 Negative disturbances gave rise to unemployment, intensifying the pressure on governments to react in ways that might jeopardize the monetary standard.2

1By the “bureaucratization” of labor markets, a term that follows the title of Sanford Jaco-
by's 1985 book, I mean the rise of personnel departments and other formal structures to manage
labor relations in large enterprises.

2 Using data from a sample of six industrial countries, Tamim Bayoumi and I (1996) found
that there was a flattening of the average slope of the aggregate supply curve, consistent with the

-43-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Globalizing Capital: A History of the International Monetary System
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Preface vii
  • Chapter One - Introduction 1
  • Chapter Two - The Gold Standard 6
  • Chapter Three - Interwar Instability 43
  • Chapter Four - The Bretton Woods System 91
  • Chapter Five - After Bretton Woods 134
  • Chapter Six - A Brave New Monetary World 185
  • Chapter Seven - Conclusion 228
  • Glossary 233
  • References 241
  • Index 259
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 265

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.