Description
This book presents an economic survey of international capital mobility from the late nineteenth century to the present. The authors examine the theory and empirical evidence surrounding the fall and rise of integration in the world market. A discussion of institutional developments focuses on capital controls and the pursuit of macroeconomic policy objectives in shifting monetary regimes. A fundamental macroeconomic policy trilemma has forced policymakers to trade off between conflicting goals, with natural implications for capital mobility. The present era of globalization can be seen, in part, as the resumption of a liberal world order that had earlier been established in the years 1880-1914. Yet much has changed along the way. The Great Depression emerges as the key turning point in recent history of international capital markets, and offers important insights for contemporary policy debates.
