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Crises and Punishment: Moral Hazard and the Pre-1914 International Financial Architecture
Marc Flandreau,Marc Flandreau +1 more
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TL;DR: The authors argue that the backbone of the pre-1914 international financial architecture was the concern about moral hazard No decentralized system can leave without safeguards against free riding and this typically means that problem countries must find by themselves the means to fix their domestic problems.
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Abstract: This Paper argues that the backbone of the pre-1914 international financial architecture was the concern about moral hazard No decentralized system can leave without safeguards against free riding and this typically means that problem countries must find by themselves the means to fix their domestic problems We review the origins of crises as well as the remedies that were commonly applied one century ago and find that the international financial world was fairly similar to the setting in which we live today, and this for the same reasons Today, just like one century ago, in the absence of an international lender of last resort with huge regulatory powers, countries must muddle through, with the occasional - and imperfect - help of international finance
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Citations
The rise and fall of the dollar (or when did the dollar replace sterling as the leading reserve currency
Barry Eichengreen,Marc Flandreau +1 more
TL;DR: The connections between the gold-exchange standard and the Great Depression have been discovered repeatedly by Ehsan Choudhri and Levis Kochin in a seminal article in 1980.
•Book
The making of global finance 1880-1913
Marc D. Weidenmeir
- 01 Jan 2004
TL;DR: The Making of Global Finance as mentioned in this paper traces the roots of global financial integration in the first "modern" era of globalization, from 1880 to 1913, and analyzes the direction, destinations, and origins of international financial flows in order to determine the domestic policy choices that either attracted or deterred such flows to developing countries.
Bonds and Brands: Foundations of Sovereign Debt Markets, 1820-1830
Marc Flandreau,Juan H. Flores +1 more
TL;DR: The authors argue that capitalists turned to intermediaries' reputations to guide their investment strategies, and this sustained the development of sovereign debt, and it suggests why strong but undemocratic states could borrow.
The role of foreign currency debt in financial crises: 1880¿1913 versus 1972¿1997
TL;DR: The authors show that exposure to foreign currency debt does not necessarily increase the risk of having a financial crisis, despite the fact that many developed countries do not suffer from financial fragility despite original sin.
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Central Bank Co-operation in Historical Perspective: a Sceptical View
TL;DR: In this paper, the authors take a critical view of the central bank cooperation thesis and, relying on new archival research as well as on secondary sources, offer an alternative picture of central bank relations during the nineteenth century.
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Monetary Union, Trade Integration, and Business Cycles in 19th Century Europe
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109
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TL;DR: In this article, the authors trace the impact of monetary arrangements on trade integration and business cycle correlation, focusing on Europe in the late 19th century period as a guide for modern debates.
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