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Globalization and Capital Markets

In: Globalization in Historical Perspective

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  • Maurice Obstfeld
  • Alan M. Taylor

Abstract

The ebb and flow of international capital since the nineteenth century illustrates recurring difficulties, as well as the alternative perspectives from which policymakers have tried to confront them. This paper is devoted to documenting these vicissitudes quantitatively and explaining them. Economic theory and economic history together can provide useful insights into events of the past and deliver relevant lessons for today. We argue that theories of how international capital mobility has evolved must be understood within the framework of the basic policy trilemma constraining an open economy's choice of monetary regime.

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  • Michael D. Bordo & Alan M. Taylor & Jeffrey G. Williamson, 2003. "Globalization in Historical Perspective," NBER Books, National Bureau of Economic Research, Inc, number bord03-1, October.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 9587.

    Handle: RePEc:nbr:nberch:9587

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