Political Science 2211E Chapter Notes - Chapter Helleiner: Franklin National Bank, Foreign Exchange Controls, Eurodollar
16 Jan 2018
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Hellei(cid:374)er, (cid:862)fro(cid:373) bretto(cid:374) woods to glo(cid:271)al fi(cid:374)a(cid:374)(cid:272)e: a world tur(cid:374)ed upside dow(cid:374)(cid:863) From the 60s onward, private international financial activity has grown. Adopted a non-liberal stance in the financial arena, strongly endorsing the use of capital controls. A liberal system was not compatible with the stable system of exchange rates and liberal trading system that they hoped to create. Flows had to be controlled if a fixed exchange rate system was to be maintained. Reflected a decision to sacrifice financial liberalism in the interests of creating a stable exchange rate system and liberal trading order. Global financial markets were a child of technological and market pressures. The creation of increasingly sophisticated telecommunications technologies had dramatically reduced the costs and difficulties involved in transferring money around the world. States are said to have played a small role in globalization of finance.
