The Internationalization of Money and Finance and the Globalization of Financial Markets
AbstractIn this paper I combine long multi-country time series data for interest rates and stock returns with the institutional evidence for much earlier centuries amassed by economic historians to study the question of financial globalization and how it has altered since the late classical era. At their longest, for Dutch and English short-term interest rates, the quantitative data that I use extend back slightly more than three centuries. The institutional history provides information on an additional millennium's worth of experience. The conclusion that I reach is that the internationalization of money and finance and the globalization of financial markets are not new phenomena. They are part of an evolutionary process that began much earlier and that has continued, albeit with periodic interruptions and reversals, for many centuries. What we see today is simply the latest and most advanced manifestation of this process.
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Bibliographic InfoPaper provided by EconWPA in its series International Finance with number 0311003.
Length: 38 pages
Date of creation: 12 Nov 2003
Date of revision:
Note: Type of Document - pdf; pages: 38
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Financial Integration; real interest rates; real stock returns; international money; financial history;
Other versions of this item:
- Lothian, James R., 2002. "The internationalization of money and finance and the globalization of financial markets," Journal of International Money and Finance, Elsevier, vol. 21(6), pages 699-724, November.
- F30 - International Economics - - International Finance - - - General
- N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-11-16 (All new papers)
- NEP-CBA-2003-11-16 (Central Banking)
- NEP-FMK-2003-11-16 (Financial Markets)
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