The History of Financial Derivatives: A 2-Part Feature - Part 1: The Emergence and Development of Financial Derivatives Post-Bretton Woods

2014 ◽  
Author(s):  
Hilary Till
Keyword(s):  
Financial Derivatives ◽  
Bretton Woods ◽  
History Of ◽  
Part Feature

Book Reviews

2017 ◽  
Vol 55 (2) ◽  
pp. 662-663
Keyword(s):  
Middle Ages ◽  
Common Law ◽  
Civil Law ◽  
Legal Tradition ◽  
Bretton Woods ◽  
The Past ◽  
History Of ◽  
Lewis And Clark ◽  
The Middle Ages

Eric Tymoigne of Lewis and Clark College reviews “Money in the Western Legal Tradition: Middle Ages to Bretton Woods,” edited by David Fox and Wolfgang Ernst. The Econlit abstract for this book begins: “Thirty-three papers, most previously presented at conferences held in Cambridge in 2011 and 2012 and supported by the Gerda Henkel Stiftung, provide a history of some of the main topics in the monetary law of the civil law and common law systems at different stages of its development over the past eight hundred years, from the Middle Ages until the Bretton Woods agreements of 1944.”

scholarly journals Le système monétaire européen à la lumière de l’expérience et de la théorie monétaires

2005 ◽  
Vol 12 (3) ◽  
pp. 465-474 ◽  
Author(s):  
Roger Dehem
Keyword(s):  
Gold Standard ◽  
International Monetary System ◽  
Macroeconomic Policies ◽  
Monetary Policies ◽  
Bretton Woods ◽  
The Past ◽  
Monetary System ◽  
The Sixties ◽  
History Of ◽  
The One

In the light of monetary experience and theory, the EMS appears to be unsustainable. Monetary history of the past sixty years shows that every attempt to stabilise the international monetary System has been frustrated as a consequence of divergent egocentric monetary policies. The breakdown of the rules of the gold standard game in the twenties, as well as the use of money as an instrument in national macroeconomic policies under the Bretton Woods regime have ultimately led to the demise of the fixed exchange rates System. In the sixties, European views on monetary policies were quite divergent, but in the seventies institutional attempts were made to bring them apparently into line. The "snake" arrangements, initiated in 1972, soon degenerated. The more ambitious attempt of 1979, the institutionally more elaborate EMS, suffers from the same basic weakness as all the previous ones. It lacks a common monetary standard, such as the one proposed in the 1975 Ail-Saints Manifesto. Such a standard is a necessary and a sufficient condition for a sustainable common monetary System.

scholarly journals The international economic system in the historical process and China's role

Napredak ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 63-76
Author(s):  
Li Wei
Keyword(s):  
International Economic ◽  
World War Ii ◽  
Economic System ◽  
Institutional Changes ◽  
World War ◽  
Trade Finance ◽  
Historical Process ◽  
Bretton Woods ◽  
History Of

The history of the construction and development of the international economic system can be traced back to the establishment of the Bretton Woods system at the end of World War II. After more than 70 years, the international economic system in different economic fields such as trade, finance and investment, as well as at the global and regional levels, has been continuously built, reformed and evolved, forming a scene of variety of current international economic system. During this period, China`s role in the international economic system has also experienced gradual changes, and has generally undergone a transformation from a bystander to a part trying to fit in, then to a participant, and finally a leader. The evolution of China`s role is not only the cause of the institutional changes in the international economic system, but also the outcome. They are complementary and closely related to each other. In the development of the international economic system, China has gradually moved from the periphery to the center, which is both an opportunity and a challenge for China.

scholarly journals Derivatives and Deregulation Financial Innovation and the Demise of Glass–Steagall

2017 ◽  
Author(s):  
Russell Funk ◽  
Daniel Hirschman
Keyword(s):  
Interest Rate ◽  
Foreign Exchange ◽  
Investment Banking ◽  
Financial Derivatives ◽  
Investment Banks ◽  
The Political ◽  
Product Categories ◽  
Direct Competition ◽  
History Of ◽  
Regulatory Scrutiny

Just as regulation may inhibit innovation, innovation may undermine regulation. Regulators, much like market actors, rely on categorical distinctions to understand and act on the market. Innovations that are ambiguous to regulatory categories but not to market actors present a problem for regulators and an opportunity for innovative firms to evade or upend the existing order. We trace the history of one class of innovative financial derivatives—interest rate and foreign exchange swaps—to show how these instruments under- mined the separation of commercial and investment banking established by the Glass-Steagall Act of 1933. Swaps did not fit neatly into existing product categories—futures, securities, loans—and thus evaded regulatory scrutiny for decades. The market success of swaps put commercial and investment banks into direct competition, and in so doing undermined Glass-Steagall. Drawing on this case, we theorize some of the political and market conditions under which regulations may be especially vulnerable to disruption by ambiguous innovations.

scholarly journals Exchange Arrangements Entering the Twenty-First Century: Which Anchor will Hold?*

2019 ◽  
Vol 134 (2) ◽  
pp. 599-646 ◽  
Author(s):  
Ethan Ilzetzki ◽  
Carmen M Reinhart ◽  
Kenneth S Rogoff
Keyword(s):  
Exchange Rate ◽  
Capital Controls ◽  
First Century ◽  
Bretton Woods ◽  
History Of ◽  
Exchange Rate Arrangements ◽  
Central Bankers ◽  
Comprehensive History ◽  
The U.S

Abstract This article provides a comprehensive history of anchor or reference currencies, exchange rate arrangements, and a new measure of foreign exchange restrictions for 194 countries and territories over 1946–2016. We find that the often cited post–Bretton Woods transition from fixed to flexible arrangements is overstated; regimes with limited flexibility remain in the majority. Even if central bankers’ communications jargon has evolved considerably in recent decades, it is apparent that many still place a large implicit weight on the exchange rate. The U.S. dollar scores as the world's dominant anchor currency by a very large margin. By some metrics, its use is far wider today than 70 years ago. In contrast, the global role of the euro appears to have stalled. We argue that in addition to the usual safe assets story, the record accumulation of reserves since 2002 may also have to do with many countries’ desire to stabilize exchange rates in an environment of markedly reduced exchange rate restrictions or, more broadly, capital controls: an important amendment to the conventional portrayal of the macroeconomic trilemma.

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