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April 2000 - As financial liberalization progressed, the general level of real interest rates increased more in developing countries than it did in industrial countries. Volatility in wholesale interest rates also jumped, often markedly, in most liberalizing countries. Treasury bill rates and bank spreads showed the greatest increase in developing countries, shifting substantial rents from the public sector and from favored borrowers. Financial liberalization was expected to make interest rates and asset prices more volatile, with distributional consequences such as reduced or relocated rents and increased competition in financial services. Honohan examines available data on money market and bank interest rates for evidence of whether these things happened. He shows that as more and more countries liberalized, the level and dynamic behavior of developing-country interest rates converged to industrial-country norms. In the short term, volatility increased in both real and nominal money market interest rates. Treasury bill rates and bank spreads, evidently the most repressed, showed the greatest increase as liberalization progressed - shifting substantial rents from the public sector and from favored borrowers. Whereas quoted bank spreads in industrial countries contracted somewhat in the late 1990s, spreads in developing countries remained much higher, presumably reflecting both market power and the higher risks of lending in the developing world. There was no clear-cut change in mean rates of inflation, monetary depth, or GDP growth. If anything, there was a small average improvement in inflation, but a decline in monetary depth and economic growth, relative to trends in industrial countries. This paper - a product of Finance, Development Research Group - is part of a larger effort in the group to explore optimal policy under financial liberalization. The author may be contacted atphonohan@worldbank.org.

Asset Prices --- Bank Interest Rates --- Bank Lending --- Bank Spreads --- Borrowers --- Currencies and Exchange Rates --- Debt Markets --- Depos Developing Countries --- Developing Country --- Economic Theory and Research --- Emerging Markets --- Finance and Financial Sector Development --- Financial Liberalization --- Financial Literacy --- Insurance and Risk Mitigation --- Interest --- Interest Rate --- Interest Rates --- Lending --- Macroeconomic Management --- Macroeconomics and Economic Growth --- Market Interest Rates --- Money Market --- Private Sector Development --- Real Interest --- Real Interest Rates --- Treasury --- Treasury Bill --- Treasury Bill Rates

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A powerful new understanding of global currency trends, including the rise of the Chinese yuanAt first glance, the modern history of the global economic system seems to support the long-held view that the leading world power's currency-the British pound, the U.S. dollar, and perhaps someday the Chinese yuan-invariably dominates international trade and finance. In How Global Currencies Work, three noted economists provide a reassessment of this history and the theories behind the conventional wisdom.Offering a new history of global finance over the past two centuries, and marshaling extensive new data to test established theories of how global currencies work, Barry Eichengreen, Arnaud Mehl, and Livia Chiţu argue for a new view, in which several national monies can share international currency status, and their importance can change rapidly. They demonstrate how changes in technology and in the structure of international trade and finance have reshaped the landscape of international currencies so that several international financial standards can coexist. They show that multiple international and reserve currencies have in fact coexisted in the pastupending the traditional view of the British pound's dominance prior to 1945 and the U.S. dollar's dominance more recently.Looking forward, the book tackles the implications of this new framework for major questions facing the future of the international monetary system, from whether the euro and the Chinese yuan might address their respective challenges and perhaps rival the dollar, to how increased currency competition might affect global financial stability.

Valute. --- Money. --- International finance. --- Account (accountancy). --- Annual report. --- Asset. --- Balance sheet. --- Bank for International Settlements. --- Bank of England. --- Bank of Japan. --- Bank rate. --- Bank. --- Barry Eichengreen. --- Bond (finance). --- Bretton Woods system. --- Canadian dollar. --- Capital control. --- Capital market. --- Central bank. --- Commodity. --- Credibility. --- Credit (finance). --- Credit risk. --- Currency Internationalization. --- Currency competition. --- Currency swap. --- Currency. --- Current account. --- Customer. --- Debt. --- Deflation. --- Determinant. --- Deutsche Mark. --- Devaluation. --- Discounts and allowances. --- Economics. --- Economist. --- Economy. --- Endogeneity (econometrics). --- Estimation. --- European Central Bank. --- Exchange rate. --- Export. --- Federal Reserve Bank. --- Fiat money. --- Finance. --- Financial crisis. --- Financial deepening. --- Financial institution. --- Financial transaction. --- Foreign Exchange Reserves. --- Foreign direct investment. --- Foreign exchange market. --- French franc. --- Gold reserve. --- Gold standard. --- Government debt. --- Gross world product. --- Import. --- Inflation. --- Institution. --- Interest rate. --- International Monetary Fund. --- International monetary systems. --- International trade. --- Internationalization. --- Investment. --- Investor. --- Invoice. --- Issuer. --- Liberalization. --- Local currency. --- Market capitalization. --- Market liquidity. --- Market participant. --- Monetary policy. --- Money market. --- Natural monopoly. --- Network effect. --- Payment. --- Pound sterling. --- Receipt. --- Renminbi. --- Reserve currency. --- Securitization. --- Security (finance). --- Sterling area. --- Store of value. --- Supply (economics). --- Swiss franc. --- Tax. --- Trade credit. --- Treasury Bill. --- U.S. Bancorp. --- Underwriting. --- Unit of account. --- United States dollar. --- Valuation effects. --- World War II. --- World currency. --- World economy.

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"For many, the most authoritative history of US economic policy is told by Milton Friedman and Anna Schwartz, in their 1963 PUP book, A Monetary History of the United States, 1867-1960, as well as Alan Meltzer's multi-volume history of the Federal Reserve, published in 2003 and 2010. Both works were written by economists marshalling historical data to make an argument about what type of economic policy works best. Friedman and Schwartz's book led to the rise of monetarism, the idea that virtually the only thing governments can or should do when it comes to the economy is determine how much money to put in it. If there aren't enough jobs, for example, just put more money in the economy through bank lending, and businesses will hire more. There's no need for the government, the theory holds, to stimulate spending from the bottom up or encourage hiring or improve wages through any other means. These days, the concept of monetarism, though still a predominant policy framework, is seen by many as a very particular and narrow viewpoint, but there's no authoritative book on the level of Friedman and Schwartz that sets the record straight. In A Monetary and Fiscal History of the United States, 1961-2021, economist Alan Blinder lays out the history of US economic policy since Friedman and Schwartz, through the wider lens of the interaction between monetary and fiscal policy. He shows, decade by decade, that a powerful influence that the government has on the economy is not just through how much money it puts in it (monetary policy) but through decisions on how money is spent (fiscal policy). In this book Alan Blinder shifts the narrative dominance from monetarism and interest rates to a shared influence of monetary and fiscal policy, and he shows how the government has long been using various policies to stimulate spending, ranging from tax breaks and credits to direct checks to citizens. He does this from an insider's perspective, offering an authoritative history of US economic policy from Kennedy to COVID"--

BUSINESS & ECONOMICS / Economic History. --- United States --- Economic policy --- Fiscal policy --- Monetary policy --- Monetary management --- Currency boards --- Money supply --- Tax policy --- Taxation --- Finance, Public --- History --- Government policy --- 1900-2099 --- Money. Monetary policy --- Business cycles --- anno 1900-1999 --- anno 2000-2009 --- anno 2010-2019 --- anno 2020-2029 --- United States of America --- A Monetary History of the United States. --- American Recovery and Reinvestment Act of 2009. --- Balanced Budget Act of 1997. --- Bank War. --- Bank of America. --- Basis Point. --- Ben Bernanke. --- Bureau of Economic Analysis. --- Bush tax cuts. --- Capital Purchase Program. --- Central bank. --- Chair of the Federal Reserve. --- Clintonism. --- Commission on Money and Credit. --- Core inflation. --- Council of Economic Advisers. --- Credit (finance). --- Credit crunch. --- Crowding out (economics). --- Dodd–Frank Wall Street Reform and Consumer Protection Act. --- Economic Outlook (OECD publication). --- Economic Report of the President. --- Economic Stimulus Act of 2008. --- Economic history of the United States. --- Economics. --- Economist. --- Economy of the United States. --- Emergency Economic Stabilization Act of 2008. --- Federal Open Market Committee. --- Federal Reserve Board of Governors. --- Federal Savings and Loan Insurance Corporation. --- Federal funds rate. --- Financial Crisis Inquiry Commission. --- Financial crisis of 2007–08. --- Financial crisis. --- Fiscal policy. --- Fiscal theory of the price level. --- Generally Accepted Accounting Principles (United States). --- Government budget balance. --- Government debt. --- Income tax in the United States. --- Inflation. --- Interest rate. --- International Monetary Fund. --- Jimmy Carter. --- John Maynard Keynes. --- Keynesian Revolution. --- Keynesian economics. --- Lehman Brothers. --- Macroeconomics. --- Milton Friedman. --- Monetarism. --- Monetary policy. --- Money market fund. --- National Bureau of Economic Research. --- National Commission on Fiscal Responsibility and Reform. --- National debt of the United States. --- Net interest margin. --- New classical macroeconomics. --- North American Free Trade Agreement. --- Phillips curve. --- Presidency of Bill Clinton. --- Reagan tax cuts. --- Real versus nominal value (economics). --- Recession. --- Savings and loan crisis. --- Seasonally adjusted annual rate. --- Supply-side economics. --- Tax Policy Center. --- Tax Reform Act of 1986. --- Tax cut. --- Tax reform. --- Tax. --- Treasury Bill. --- Treasury Offering. --- Treasury Yield. --- Troubled Asset Relief Program. --- Unemployment. --- United States Secretary of the Treasury. --- United States Treasury security. --- United States debt ceiling. --- United States dollar. --- United States federal budget. --- We are all Keynesians now. --- Whip inflation now.