The internationalization of money and finance and the globalization of financial markets
In 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.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frankel, Jeffrey A, 1992. "Measuring International Capital Mobility: A Review," American Economic Review, American Economic Association, vol. 82(2), pages 197-202, May.
- Grassman, Sven, 1980. "Long-Term Trends in Openness of National Economies," Oxford Economic Papers, Oxford University Press, vol. 32(1), pages 123-33, March.
- James Lothian & Yusif Simaan, 1998. "International Financial Relations Under the Current Float: Evidence from Panel Data," Open Economies Review, Springer, vol. 9(4), pages 293-313, October.
- Lopez, Robert Sabatino, 1951. "The Dollar of the Middle Ages," The Journal of Economic History, Cambridge University Press, vol. 11(03), pages 209-234, June.
- Alan M. Taylor, 2002.
"A Century of Current Account Dynamics,"
NBER Working Papers
8927, National Bureau of Economic Research, Inc.
- Gerald P. Dwyer & James R. Lothian, 2003.
"International Money and Common Currencies in Historical Perspective,"
CEIS Research Paper
9, Tor Vergata University, CEIS.
- Gerald P. Dwyer & James R. Lothian, 2002. "International money and common currencies in historical perspective," FRB Atlanta Working Paper 2002-7, Federal Reserve Bank of Atlanta.
- Gerald P. Dwyer Jr. & James R. Lothian, 2003. "International Money and Common Currencies in Historical Perspective," International Finance 0311005, EconWPA.
- Lothian, James R & Taylor, Mark P, 1996. "Real Exchange Rate Behavior: The Recent Float from the Perspective of the Past Two Centuries," Journal of Political Economy, University of Chicago Press, vol. 104(3), pages 488-509, June.
- Michael D. Bordo & Barry Eichengreen & Jongwoo Kim, 1998. "Was There Really an Earlier Period of International Financial Integration Comparable to Today?," NBER Working Papers 6738, National Bureau of Economic Research, Inc.
- Kevin H. O'Rourke, 2002.
"Europe and the causes of globalization, 1790 to 2000,"
Trinity Economics Papers
20021, Trinity College Dublin, Department of Economics.
- Kevin H. O'Rourke, 2002. "Europe and the causes of globalization, 1790 to 2000," CEG Working Papers 20021, Trinity College Dublin, Department of Economics.
- Johnson, David R, 1993. "International Interest Rate Linkages in the Term Structure," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 25(4), pages 755-70, November.
- Lastrapes, W. D., 1998. "International evidence on equity prices, interest rates and money," Journal of International Money and Finance, Elsevier, vol. 17(3), pages 377-406, June.
- George Furstenberg, 1998. "From Worldwide Capital Mobility to International Financial Integration: A Review Essay," Open Economies Review, Springer, vol. 9(1), pages 53-84, January.
- Maurice Obstfeld & Alan M. Taylor, 2003.
"Globalization and Capital Markets,"
in: Globalization in Historical Perspective, pages 121-188
National Bureau of Economic Research, Inc.
- Eagly, Robert V. & Smith, V. Kerry, 1976. "Domestic and International Integration of the London Money Market, 1731–1789," The Journal of Economic History, Cambridge University Press, vol. 36(01), pages 198-212, March.
- Johnson, David R., 1992. "International interest rate linkages and the exchange rate regime," Journal of International Money and Finance, Elsevier, vol. 11(4), pages 340-365, August.
- Kevin H. O'Rourke & Jeffrey G. Williamson, 2000.
"When Did Globalization Begin?,"
NBER Working Papers
7632, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:eee:jimfin:v:21:y:2002:i:6:p:699-724. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.