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Cryptoeconomics: Fundamental Principles of Bitcoin by Eric Voskuil, James Chiang, Amir Taaki

bank run, banks create money, bitcoin, blockchain, break the buck, cashless society, cognitive dissonance, cryptocurrency, delayed gratification, en.wikipedia.org, foreign exchange controls, Fractional reserve banking, Free Software Foundation, global reserve currency, Joseph Schumpeter, market clearing, Metcalfe’s law, Money creation, money market fund, Network effects, peer-to-peer, price stability, reserve currency, risk free rate, seigniorage, smart contracts, social graph, time value of money, Turing test, zero day, zero-sum game

Value Proposition The value of Bitcoin over its alternatives derives directly from removing the state from control over both monetary supply and transaction censorship . Advantages include freedom from seigniorage [216] , foreign exchange controls [217] , and financial surveillance [218] . These allow the money to be transferred to any person , in any place, at any time, without need for third party permission. These advantages represent cost reduction through the avoidance of tax. Seigniorage is directly a tax, while foreign exchange controls limit its evasion. The state itself often claims political independence [219] as an objective in the interest of limiting this taxing power.

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The term “reserve currency ” [243] refers to a state hoard, as required for settlement [244] of accounts with other states. Money reserves of people within a state generally consist of the state’s issued money – primarily notes or fiat, with a lesser amount in coin [245] . States buy reserve currency from people using monopoly money [246] , foreign exchange controls [247] and direct taxation. Using their own money discounts purchases by the amount of seigniorage [248] . Foreign exchange controls restrict or prohibit use of the reserve currency as money. By treating the reserve currency as property but not money, the state creates a tax on the apparent capital gain [249] in the reserve money when it devalues its money [250] against the reserve money through monetary inflation [251] .

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* * * [10] https://libbitcoin.info [11] https://bitcoincore.org [12] Chapter: Dedicated Cost Principle [13] https://www.dtu.dk/english [14] https://twitter.com [15] https://libbitcoin.info [16] https://github.com/libbitcoin/libbitcoin-system/wiki/Cryptoeconomics [17] Chapter: Inflation Principle [18] Chapter: Savings Relation [19] https://en.wikipedia.org/wiki/Amir_Taaki [20] Chapter: Foreword [25] https://libbitcoininstitute.org [26] https://en.wikipedia.org/wiki/Free_Software_Foundation [27] https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3-organizations [28] Chapter: Value Proposition [51] https://en.wikipedia.org/wiki/Ludwig_von_Mises [52] https://en.wikipedia.org/wiki/Murray_Rothbard [53] Chapter: Inflation Principle [54] Chapter: Money Taxonomy [55] Chapter: Full Reserve Fallacy [56] Chapter: Censorship Resistance Property [57] Chapter: Depreciation Principle [83] https://en.wikipedia.org/wiki/Spherical_geometry [84] Chapter: Permissionless Principle [85] Chapter: Censorship Resistance Property [86] Chapter: Hearn Error [87] https://en.wikipedia.org/wiki/Confinity [88] Chapter: Value Proposition [89] https://en.wikipedia.org/wiki/PayPal [90] Chapter: Risk Sharing Principle [91] Chapter: Proof of Work Fallacy [92] Chapter: Side Fee Fallacy [93] Chapter: Axiom of Resistance [94] Chapter: Qualitative Security Model [95] Chapter: Pooling Pressure Risk [96] Chapter: Risk Sharing Principle [98] Chapter: Threat Level Paradox [99] https://en.wikipedia.org/wiki/Foreign_exchange_controls [100] Chapter: Risk Sharing Principle [101] Chapter: Threat Level Paradox [102] Chapter: Balance of Power Fallacy [103] Chapter: Pooling Pressure Risk [104] http://www.imf.org/external/index.htm [105] https://en.wikipedia.org/wiki/Seigniorage [106] Chapter: Threat Level Paradox [107] https://www.theatlantic.com/magazine/archive/2017/09/big-in-venezuela/534177/ [110] Chapter: Fragmentation Principle [111] Chapter: Consolidation Principle [112] Chapter: Risk Sharing Principle [115] Chapter: Risk Sharing Principle [116] Chapter: Proof of Stake Fallacy [117] Chapter: Censorship Resistance Property [118] Chapter: Axiom of Resistance [119] Chapter: Money Taxonomy [120] Chapter: Reservation Principle [121] Chapter: Blockchain Fallacy [122] Chapter: Axiom of Resistance [123] https://en.wikipedia.org/wiki/Cognitive_dissonance [124] https://en.wikipedia.org/wiki/Wikipedia:Rage_quit [125] Chapter: Dumping Fallacy [126] Chapter: Qualitative Security Model [127] Chapter: Inflation Principle [128] Chapter: Lunar Fallacy [131] Chapter: Hearn Error [132] Chapter: Value Proposition [134] Chapter: Other Means Principle [135] https://en.m.wikipedia.org/wiki/Seigniorage [136] https://www.imf.org [137] Chapter: Pooling Pressure Risk [138] Chapter: Axiom of Resistance [139] Chapter: Risk Sharing Principle [140] https://en.wikipedia.org/wiki/Seigniorage [141] Chapter: Money Taxonomy [142] Chapter: Qualitative Security Model [143] https://en.wikipedia.org/wiki/Seigniorage [144] Chapter: Hearn Error [145] Chapter: Fedcoin Objectives [146] Chapter: Public Data Principle [147] Chapter: Proof of Work Fallacy [148] Chapter: Other Means Principle [149] Chapter: Censorship Resistance Property [150] https://en.wikiquote.org/wiki/Carl_von_Clausewitz [151] Chapter: Threat Level Paradox [152] https://mises.org/library/man-economy-and-state-power-and-market/html/p/1075 [153] Chapter: Pooling Pressure Risk [154] https://www.asicboost.com/patent [155] Chapter: Axiom of Resistance [156] Chapter: Risk Sharing Principle [157] Chapter: Public Data Principle [158] Chapter: Qualitative Security Model [159] Chapter: Threat Level Paradox [160] Chapter: Cryptodynamic Principles [161] Chapter: Value Proposition [162] Chapter: Other Means Principle [174] https://coinweek.com/bullion-report/bitcoin-vs-gold-10-crystal-clear-comparisons [175] Chapter: Stability Property [176] Chapter: Proximity Premium Flaw [177] Chapter: Risk Sharing Principle [178] Chapter: Balance of Power Fallacy [181] Chapter: Threat Level Paradox [182] https://en.wikipedia.org/wiki/Anonymizer [183] Chapter: Side Fee Fallacy [184] Chapter: Social Network Principle [185] https://en.wikipedia.org/wiki/Graph_(discrete_mathematics)#Directed_graph [186] https://en.wikipedia.org/wiki/Goodwill_(accounting) [189] Chapter: Axiom of Resistance [190] Chapter: Public Data Principle [191] Chapter: Balance of Power Fallacy [192] Chapter: Cockroach Fallacy [193] https://en.wikipedia.org/wiki/Blockchain [194] https://en.wikipedia.org/wiki/Cryptography [195] https://en.wikipedia.org/wiki/Free_and_open-source_software [196] Chapter: Prisoner’s Dilemma Fallacy [201] Chapter: Axiom of Resistance [203] Chapter: Money Taxonomy [204] Chapter: Risk Sharing Principle [205] Chapter: Axiom of Resistance [206] Chapter: Zero Sum Property [207] https://en.wikipedia.org/wiki/Subsidy [208] https://en.wikipedia.org/wiki/Black_market [209] https://www.theatlantic.com/magazine/archive/2017/09/big-in-venezuela/534177 [210] Chapter: Axiom of Resistance [211] Chapter: Pooling Pressure Risk [212] Chapter: Risk Sharing Principle [213] https://en.wikipedia.org/wiki/Attack_surface [214] https://en.wikipedia.org/wiki/Foreign_exchange_controls [215] Chapter: Centralization Risk [216] https://en.m.wikipedia.org/wiki/Seigniorage [217] https://en.m.wikipedia.org/wiki/Foreign_exchange_controls [218] https://en.m.wikipedia.org/wiki/Know_your_customer [220] Chapter: Money Taxonomy [221] Chapter: Scalability Principle [222] Chapter: Risk Sharing Principle [223] Chapter: Axiom of Resistance [224] Chapter: Value Proposition [225] Chapter: Other Means Principle [226] Chapter: Money Taxonomy [227] Chapter: Axiom of Resistance [229] Chapter: Risk Sharing Principle [230] https://en.m.wikipedia.org/wiki/Inflation [231] https://en.m.wikipedia.org/wiki/Seigniorage [232] Chapter: Depreciation Principle [233] Chapter: Money Taxonomy [234] https://en.m.wikipedia.org/wiki/Subjective_theory_of_value [235] Chapter: Time Preference Fallacy [236] https://en.m.wikipedia.org/wiki/Marginal_utility [237] https://en.m.wikipedia.org/wiki/Murray_Rothbard [238] https://mises.org/library/what-has-government-done-our-money/html/p/81 [246] Chapter: Money Taxonomy [247] https://en.wikipedia.org/wiki/Foreign_exchange_controls [248] https://en.wikipedia.org/wiki/Seigniorage [249] https://www.investopedia.com/articles/personal-finance/081616/understanding-taxes-physical-goldsilver-investments.asp [250] https://en.wikipedia.org/wiki/Inflation [251] https://en.wikipedia.org/wiki/Monetary_inflation [252] https://en.wikipedia.org/wiki/Exchange_rate#Parallel_exchange_rate [261] Chapter: Reserve Currency Fallacy [262] https://wiki.mises.org/wiki/Money_substitutes [263] Chapter: Reservation Principle [264] Chapter: Money Taxonomy [265] https://en.wikipedia.org/wiki/Monetary_inflation [266] https://en.wikipedia.org/wiki/Promissory_note [273] Chapter: Fedcoin Objectives [274] Chapter: Censorship Resistance Property [275] Chapter: Axiom of Resistance [276] Chapter: Cryptodynamic Principles [277] https://en.wikipedia.org/wiki/Lender_of_last_resort [278] https://en.wikipedia.org/wiki/Free_banking [279] Chapter: Thin Air Fallacy [280] https://en.wikipedia.org/wiki/Central_bank [281] https://en.wikipedia.org/wiki/Discount_window [282] https://en.wikipedia.org/wiki/Structure_of_the_Federal_Reserve_System [283] https://www.frbdiscountwindow.org/pages/discount-rates/current-discount-rates [309] Chapter: Money Taxonomy [310] https://www.washingtonpost.com/news/wonk/wp/2013/12/16/how-tight-jeans-almost-ruined-americas-money [311] https://www.nytimes.com/2018/11/21/business/sweden-cashless-society.html [312] Chapter: Fedcoin Objectives [313] https://www.riksbank.se/en-gb/payments--cash/e-krona [314] Chapter: Reserve Currency Fallacy [315] https://en.wikipedia.org/wiki/Gold_standard [316] Chapter: Value Proposition [320] https://en.wikipedia.org/wiki/Rate_of_return [324] Chapter: Pooling Pressure Risk [328] Chapter: Risk Sharing Principle [329] https://www.federalreserve.gov/aboutthefed/bios/board/default.htm [330] Chapter: Axiom of Resistance [331] https://www.coindesk.com/uasf-revisited-will-bitcoins-user-revolt-leave-lasting-legacy [332] Chapter: Proof of Work Fallacy [337] Chapter: Efficiency Paradox [338] Chapter: Stability Property [339] Chapter: Qualitative Security Model [340] Chapter: Variance Discount Flaw [341] Chapter: Censorship Resistance Property [342] Chapter: Axiom of Resistance [343] Chapter: Pooling Pressure Risk [344] Chapter: Relay Fallacy [345] Chapter: Censorship Resistance Property [346] Chapter: Efficiency Paradox [347] http://primecoin.io [349] https://en.wikipedia.org/wiki/Paradox [351] Chapter: Zero Sum Property [352] Chapter: Pooling Pressure Risk [355] https://en.wikipedia.org/wiki/Monotonic_function [356] Chapter: Money Taxonomy [357] https://en.m.wikipedia.org/wiki/Store_of_value [358] https://en.wikipedia.org/wiki/Subjective_theory_of_value [359] https://en.wikipedia.org/wiki/Proof-of-stake [360] Chapter: Proof of Stake Fallacy [361] Chapter: Utility Threshold Property [362] Chapter: Money Taxonomy [364] Chapter: Side Fee Fallacy [365] https://en.wikipedia.org/wiki/Step_function [366] http://www.investopedia.com/terms/e/economicprofit.asp [367] Chapter: Pooling Pressure Risk [368] https://en.wikipedia.org/wiki/Time_preference [369] Chapter: Proof of Work Fallacy [370] Chapter: Balance of Power Fallacy [371] https://en.wikipedia.org/wiki/Red_herring [372] Chapter: Risk Sharing Principle [375] https://en.wikipedia.org/wiki/Zero-sum_game [376] https://en.wikipedia.org/wiki/Win-win_game [377] https://en.wikipedia.org/wiki/Chaos_theory [379] Chapter: Side Fee Fallacy [380] Chapter: Pooling Pressure Risk [381] Chapter: Zero Sum Property [382] Chapter: Threat Level Paradox [385] Chapter: Balance of Power Fallacy [386] Chapter: Proximity Premium Flaw [387] Chapter: Variance Discount Flaw [388] https://en.wikipedia.org/wiki/Economies_of_scale [389] Chapter: Axiom of Resistance [390] https://www.theatlantic.com/magazine/archive/2017/09/big-in-venezuela/534177/ [391] Chapter: Relay Fallacy [392] Chapter: Risk Sharing Principle [393] Chapter: Balance of Power Fallacy [394] https://www.federalreserve.gov [395] Chapter: State Banking Principle [396] https://en.wikipedia.org/wiki/Debasement [397] https://en.wikipedia.org/wiki/Legal_tender [398] https://en.wikipedia.org/wiki/Federal_Reserve_Note [399] Chapter: Money Taxonomy [400] https://en.wikipedia.org/wiki/Executive_Order_6102 [401] https://en.wikipedia.org/wiki/International_Monetary_Fund [404] https://en.wikipedia.org/wiki/Opportunity_cost [405] Chapter: Pooling Pressure Risk [406] Chapter: Variance Discount Flaw [407] Chapter: Axiom of Resistance [410] Chapter: Zero Sum Property [411] https://www.cs.cornell.edu/~ie53/publications/btcProcFC.pdf [413] Chapter: Pooling Pressure Risk [414] Chapter: Proximity Premium Flaw [416] https://en.wikipedia.org/wiki/Incentive_compatibility [418] Chapter: Pooling Pressure Risk [419] https://en.m.wikipedia.org/wiki/History_of_email_spam [420] Chapter: Risk Sharing Principle [423] Chapter: Pooling Pressure Risk [424] Chapter: Proximity Premium Flaw [425] Chapter: Axiom of Resistance [426] https://en.wikipedia.org/wiki/Zero-sum_game [427] Chapter: Pooling Pressure Risk [428] https://en.wikipedia.org/wiki/Closed_system [429] Chapter: Proximity Premium Flaw [430] Chapter: Variance Discount Flaw [431] https://en.wikipedia.org/wiki/Economies_of_scale [432] https://en.wikipedia.org/wiki/Subsidy [433] Chapter: Threat Level Paradox [434] http://gavinandresen.ninja/a-definition-of-bitcoin [435] https://bitcoin.org/bitcoin.pdf [436] Chapter: Cryptodynamic Principles [437] Chapter: Brand Arrogation [438] https://bitcoin.org/en/bitcoin-core [439] https://libbitcoin.info [440] Chapter: Maximalism Definition [441] Chapter: Custodial Risk Principle [443] https://en.wikipedia.org/wiki/Cryptographic_hash_function [444] Chapter: Risk Sharing Principle [446] Chapter: Money Taxonomy [447] Chapter: Cryptodynamic Principles [448] Chapter: Money Taxonomy [450] Chapter: Utility Threshold Property [451] Chapter: Money Taxonomy [452] https://en.wikipedia.org/wiki/Gresham%27s_law#Reverse_of_Gresham's_law_(Thiers'_law) [453] Chapter: Fragmentation Principle [460] Chapter: Money Taxonomy [461] https://en.wikipedia.org/wiki/Barter [462] https://en.wikipedia.org/wiki/Goods_and_services [463] Chapter: Consolidation Principle [464] Chapter: Network Effect Fallacy [465] Chapter: Dumping Fallacy [466] Chapter: Replay Protection Fallacy [467] https://en.m.wikipedia.org/wiki/Net_present_value [474] Chapter: Proof of Stake Fallacy [475] Chapter: Censorship Resistance Property [476] Chapter: Substitution Principle [478] Chapter: Consolidation Principle [479] Chapter: Side Fee Fallacy [482] Chapter: Money Taxonomy [483] Chapter: Censorship Resistance Property [484] Chapter: Axiom of Resistance [485] https://eprint.iacr.org/2017/893.pdf [486] Chapter: Energy Waste Fallacy [487] Chapter: Pooling Pressure Risk [488] Chapter: Proof of Memory Façade [489] Chapter: Energy Waste Fallacy [490] Chapter: Censorship Resistance Property [491] Chapter: Other Means Principle [495] Chapter: Cryptodynamic Principles [496] Chapter: Value Proposition [497] Chapter: Proof of Stake Fallacy [498] Chapter: Axiom of Resistance [499] Chapter: Proof of Memory Façade [500] Chapter: Credit Expansion Fallacy [501] Chapter: Money Taxonomy [502] https://en.wikipedia.org/wiki/Seigniorage [503] Chapter: State Banking Principle [504] https://www.frbdiscountwindow.org [505] https://www.fdic.gov/resources/deposit-insurance [507] Chapter: Dumping Fallacy [508] https://en.m.wikipedia.org/wiki/Hoarding_(economics) [509] Chapter: Replay Protection Fallacy [510] https://en.m.wikipedia.org/wiki/Net_present_value [511] Chapter: Consolidation Principle [515] Chapter: Depreciation Principle [516] https://mises.org/library/man-economy-and-state-power-and-market/html/p/996 [517] Chapter: Reserve Currency Fallacy [518] https://en.wikipedia.org/wiki/Foreign-exchange_reserves [519] https://en.wikipedia.org/wiki/Money_supply#United_States [520] https://en.wikipedia.org/wiki/Money_supply#Money_creation_by_commercial_banks [521] Chapter: State Banking Principle [522] https://www.federalreserve.gov/releases/h3/current/default.htm [543] Chapter: Savings Relation [544] https://en.wikipedia.org/wiki/Time_preference [545] Chapter: Unlendable Money Fallacy [548] Chapter: Production and Consumption [561] https://en.wikipedia.org/wiki/Monetary_inflation [562] Chapter: Unlendable Money Fallacy [563] https://en.m.wikipedia.org/wiki/Labor_theory_of_value [564] https://en.m.wikipedia.org/wiki/Catallactics [565] Chapter: Production and Consumption [566] Chapter: Depreciation Principle [569] Chapter: Time Preference Fallacy [570] Chapter: Labor and Leisure [571] https://en.wikipedia.org/wiki/Fractional-reserve_banking [572] Chapter: Money Taxonomy [573] Chapter: Thin Air Fallacy [574] https://en.wikipedia.org/wiki/Full-reserve_banking [602] https://en.wikipedia.org/wiki/Inflation [603] Chapter: Credit Expansion Fallacy [604] https://en.wikipedia.org/wiki/Gold_mining [605] Chapter: Time Preference Fallacy [607] Chapter: Risk Free Return Fallacy [635] https://en.wikipedia.org/wiki/Tautology_(logic) [636] Chapter: Production and Consumption [637] Chapter: Labor and Leisure [639] Chapter: Regression Fallacy [640] https://en.wikipedia.org/wiki/Seigniorage [641] https://en.wikipedia.org/wiki/Catallactics [642] Chapter: Speculative Consumption [643] https://en.wikipedia.org/wiki/Pump_and_dump [644] Chapter: Time Preference Fallacy [645] Chapter: Savings Relation [646] https://en.wikipedia.org/wiki/Use_value [647] https://en.m.wikipedia.org/wiki/Fungibility [648] Chapter: Dumping Fallacy [649] https://en.wikipedia.org/wiki/Action_axiom [650] Chapter: Production and Consumption [651] https://en.m.wikipedia.org/wiki/Goods_and_services [652] https://en.wikipedia.org/wiki/Waste [653] https://en.wikipedia.org/wiki/Murray_Rothbard [654] https://mises.org/library/man-economy-and-state-power-and-market/html/p/926 [655] Chapter: Expression Principle [656] Chapter: Time Preference Fallacy [657] Chapter: Pure Bank [658] Chapter: Reservation Principle [659] Chapter: Depreciation Principle [661] https://en.wikipedia.org/wiki/Action_axiom [662] https://en.m.wikipedia.org/wiki/Goods_and_services [663] Chapter: Depreciation Principle [664] Chapter: Labor and Leisure [665] https://en.wikipedia.org/wiki/Waste [666] Chapter: Pure Bank [667] Chapter: Reserve Definition [668] https://en.m.wikipedia.org/wiki/Dividend [677] https://en.wikipedia.org/wiki/Free_banking [678] https://en.wikipedia.org/wiki/Federal_Reserve [679] https://www.fdic.gov [680] https://en.wikipedia.org/wiki/Discount_window [681] https://en.wikipedia.org/wiki/Seigniorage [682] Chapter: Money Taxonomy [683] Chapter: Inflation Principle [684] https://en.wikipedia.org/wiki/Inflation [685] https://en.wikipedia.org/wiki/Deflation [686] Chapter: Time Preference Fallacy [687] https://en.m.wikipedia.org/wiki/Arbitrage [688] https://en.wikipedia.org/wiki/Demurrage_(currency) [689] https://en.wikipedia.org/wiki/Settlement_(finance) [690] https://en.wikipedia.org/wiki/Maturity_(finance) [691] Chapter: Depreciation Principle [692] https://en.wikipedia.org/wiki/Opportunity_cost [693] https://en.wikipedia.org/wiki/Compound_interest [699] Chapter: Savings Relation [700] Chapter: Inflation Principle [704] Chapter: Time Preference Fallacy [705] https://en.wikipedia.org/wiki/Catallactics [706] https://en.wikipedia.org/wiki/Murray_Rothbard [707] https://mises.org/library/man-economy-and-state-power-and-market/html/p/989 [708] https://en.wikipedia.org/wiki/Capital_requirement [709] Chapter: Expression Principle [715] Chapter: Depreciation Principle [726] Chapter: Savings Relation [727] Chapter: Time Preference Fallacy [732] Chapter: Depreciation Principle [733] Chapter: Full Reserve Fallacy [734] Chapter: Credit Expansion Fallacy [735] Chapter: Money Taxonomy [739] Chapter: Credit Expansion Fallacy [740] Chapter: Time Preference Fallacy [741] Chapter: Money Taxonomy [742] Chapter: Inflation Principle [756] Chapter: Speculative Consumption [757] Chapter: Regression Fallacy [758] https://en.m.wikipedia.org/wiki/Use_value [759] https://en.m.wikipedia.org/wiki/Barter [760] https://en.m.wikipedia.org/wiki/Medium_of_exchange [761] https://mises.org/library/human-action-0/html/pp/778 [762] Chapter: Money Taxonomy [763] https://en.m.wikipedia.org/wiki/Commodity [764] https://en.m.wikipedia.org/wiki/Tautology_(logic) [765] Chapter: Money Taxonomy [766] https://en.wikipedia.org/wiki/Currency [767] https://wiki.mises.org/wiki/Money_substitutes [779] Chapter: Credit Expansion Fallacy [780] https://en.wikipedia.org/wiki/Promissory_note [788] https://en.wikipedia.org/wiki/Legal_tender [789] https://en.wikipedia.org/wiki/Seigniorage [790] Chapter: Stability Property [791] https://en.wikipedia.org/wiki/Fiat_money [797] https://en.wikipedia.org/wiki/Monetary_inflation [798] https://en.wikipedia.org/wiki/Purchasing_power [799] Chapter: Inflation Principle [803] https://en.wikipedia.org/wiki/Commodity_money [808] https://wiki.mises.org/wiki/Money_substitutes [809] https://financial-dictionary.thefreedictionary.com/Contractual+Claim [810] Chapter: Debt Loop Fallacy [811] https://en.wikipedia.org/wiki/Securitization [812] https://en.wikipedia.org/wiki/Banknote [813] https://en.wikipedia.org/wiki/Gold_certificate [814] https://en.wikipedia.org/wiki/Representative_money [815] https://www.investopedia.com/terms/e/electronic-money.asp [816] Chapter: Regression Fallacy [819] https://en.wikipedia.org/wiki/Counterfeit_money [823] Chapter: Cryptodynamic Principles [824] https://en.wikipedia.org/wiki/Currency [825] Chapter: Credit Expansion Fallacy [826] Chapter: Reserve Definition [827] https://wiki.mises.org/wiki/Regression_theorem [828] Chapter: Money Taxonomy [829] https://en.m.wikipedia.org/wiki/Use_value [830] https://en.m.wikipedia.org/wiki/Barter [831] https://mises.org/library/human-action-0/html/pp/778 [833] Chapter: Collectible Tautology [837] Chapter: Depreciation Principle [838] Chapter: Savings Relation [843] https://en.wikipedia.org/wiki/Risk-free_interest_rate [844] Chapter: Credit Expansion Fallacy [855] Chapter: Full Reserve Fallacy [856] https://en.wikipedia.org/wiki/Representative_money [857] Chapter: Credit Expansion Fallacy [858] https://en.wikipedia.org/wiki/Inflation [860] https://wiki.mises.org/wiki/Money_substitutes [861] Chapter: Money Taxonomy [874] https://en.m.wikipedia.org/wiki/Talking_past_each_other [875] https://en.m.wikipedia.org/wiki/Use_value [876] Chapter: Value Proposition [877] https://en.m.wikipedia.org/wiki/Metallism [878] Chapter: Regression Fallacy [879] https://en.m.wikipedia.org/wiki/Chartalism [880] Chapter: Debt Loop Fallacy [886] https://en.wikipedia.org/wiki/Bank_run [887] https://en.wikipedia.org/wiki/Central_bank [888] https://en.wikipedia.org/wiki/Lender_of_last_resort [889] Chapter: State Banking Principle [890] https://en.wikipedia.org/wiki/Monetary_inflation [891] https://en.wikipedia.org/wiki/Fisher_equation [892] https://en.wikipedia.org/wiki/Monetary_inflation [893] Chapter: Depreciation Principle [894] Chapter: Money Taxonomy [895] https://en.wikipedia.org/wiki/Seigniorage [897] Chapter: Inflation Principle [898] https://en.wikipedia.org/wiki/Inflation [899] Chapter: Time Preference Fallacy [901] Chapter: Speculative Consumption [905] https://medium.com/@paulbars/magic-internet-money-how-a-reddit-ad-made-bitcoin-hit-1000-and-inspired-south-parks-art-b414ec7a5598 [906] Chapter: Money Taxonomy [907] Chapter: Depreciation Principle [908] Chapter: Stability Property [909] https://www.fool.com/investing/2017/05/25/could-the-price-of-bitcoin-go-to-1-million.aspx [910] https://en.wikipedia.org/wiki/Gross_world_product [911] https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25 [912] Chapter: Stock to Flow Fallacy [913] Chapter: Reservation Principle [914] Chapter: Reserve Currency Fallacy [915] https://en.wikipedia.org/wiki/Catallactics [916] https://mises.org/library/man-economy-and-state-power-and-market/html/p/949 [917] Chapter: Money Taxonomy [918] Chapter: Credit Expansion Fallacy [919] Chapter: Time Preference Fallacy [920] https://en.wikipedia.org/wiki/Central_bank [921] Chapter: State Banking Principle [922] https://en.wikipedia.org/wiki/Settlement_(finance) [923] Chapter: Debt Loop Fallacy [924] https://en.wikipedia.org/wiki/Money_supply#United_States [931] Chapter: Permissionless Principle [932] https://en.wikipedia.org/wiki/Seigniorage [933] https://voxeu.org/index.php?

Rethinking the Economics of Land and Housing by Josh Ryan-Collins, Toby Lloyd, Laurie Macfarlane

agricultural Revolution, asset-backed security, balance sheet recession, bank run, banking crisis, barriers to entry, basic income, book value, Bretton Woods, business cycle, Capital in the Twenty-First Century by Thomas Piketty, collective bargaining, Corn Laws, correlation does not imply causation, creative destruction, credit crunch, debt deflation, deindustrialization, falling living standards, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, foreign exchange controls, full employment, garden city movement, George Akerlof, ghettoisation, Gini coefficient, Hernando de Soto, housing crisis, Hyman Minsky, income inequality, information asymmetry, knowledge worker, labour market flexibility, labour mobility, land bank, land reform, land tenure, land value tax, Landlord’s Game, low interest rates, low skilled workers, market bubble, market clearing, Martin Wolf, means of production, Minsky moment, Money creation, money market fund, mortgage debt, negative equity, Network effects, new economy, New Urbanism, Northern Rock, offshore financial centre, Pareto efficiency, place-making, Post-Keynesian economics, price stability, profit maximization, quantitative easing, rent control, rent-seeking, Richard Florida, Right to Buy, rising living standards, risk tolerance, Robert Solow, Second Machine Age, secular stagnation, shareholder value, subprime mortgage crisis, the built environment, The Great Moderation, The Market for Lemons, The Spirit Level, The Theory of the Leisure Class by Thorstein Veblen, The Wealth of Nations by Adam Smith, Thomas Malthus, transaction costs, universal basic income, urban planning, urban sprawl, working poor, working-age population

Feudal system – The economy and political power structure prevalent in the medieval era, under which the nobility held land in return for loyalty, and providing services such as serving or fighting for their lord. Financialisation – A term used to describe the transformation of work, services, land or other forms exchange into financial instruments, for example debt instruments like bonds, that can traded on financial markets. Foreign exchange controls – Various forms of controls imposed by a government on the purchase/sale of foreign currencies by residents or on the purchase/sale of local currency by non-residents. Gini coefficient – A measure of statistical dispersion intended to represent the income distribution of a nation’s residents.

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As the tax incentives for homeownership were increased after the 1963 abolition of imputed rent charges (see Chapter 4), popular pressure grew for wider homeownership. The deregulation of mortgage finance The Thatcher government which came to power in 1979 embarked on a major liberalisation of the financial sector. Foreign exchange controls were removed immediately, which opened the banking sector to greater foreign competition and gave UK banks access to overseas funding, in particular the fast developing Eurodollar markets. To allow UK banks to compete more effectively with foreign banks, further steps were taken including the removal of the ‘corset’.

…

Addison Act (1919), 78 adverse selection, 127 affordable housing: capital grants, 34; housing investment bank proposal, 209–10; need for public investment, 222–3; planning permission conditionalities, 33, 93–6, 216; public corporations’ investment levels, 220–1; see also social housing age, and net property wealth, 181–2, 181 agricultural land, 9, 61, 68, 69, 122–3 agricultural tariffs, 43 agriculture: common agricultural policy, 33, 122–3; increase in productivity, 68 Alliance and Leicester, 139 Aquinas, Thomas, 16 Arkwright, Richard, 71 armed forces, demobilisation, 78, 79 Association of Residential Letting Agents (ARLA), 134 Assured Shorthold Tenancy, 89 Australia: house price to income ratio, 112, 114; land value taxes, 204–5; mortgage market structure, 156 Bank of England, 210 banks/banking: alternatives to bank debt financing, 211–12; business relationship banking, 208–9; credit and money creation, 115, 206–7; housing investment bank proposal, 209–10; incentives for non-property lending, 206–8; income from mortgage interest, 61; international regulation, 135; land as lending collateral, 7, 55, 127–8; land-related credit creation, 8, 114–19, 190–1, 222; lending by industry sector, 118–19, 118; lending relative to GDP, 117–18, 117; leverage, 184; macroprudential policy, 206; minimum deposit requirements (corset controls), 132, 155; money supply, 115; regulating property-related credit, 154–5; securitisation, 135–42, 156–7, 156; structural reform recommendations, 208–9; wholesale money markets, 131, 139 Basel Accord (Basel I), 135 basements, 57, 57n16 Bath, 71 Belgium, mortgage market structure, 156 Bradford and Bingley, 139 Bretton Woods system, 83 Brighton, 71 building societies: demutualisation, 134–5, 136; effect of mortgage funding deregulation, 132–3; emergence, 72, 128; favourable tax regime, 132; history, 129; interest rate cartel, 130, 132; mergers and acquisitions, 136; mortgage funding arrangements, 131; stability, 129–30, 132, 158 Building Societies Act (1986), 133 buy-to-let (BTL): increase, 7, 184; mortgages, 122, 134; overseas investors, 100, 160; tax relief, 62, 86, 160 Cadbury, George, 71 Canada, mortgage market structure, 156 capital: conflated with land, 48–52, 62; definition, 37–8; differences between land and capital, 51–7; differences between wealth and capital, 170–1; factor in production, 37–8 capital gains tax: for buy-to-let landlords, 62; definition, 85–6; exemption for primary residencies, 85–6, 104, 202 capital goods depreciation, 52–3 capital investment, 56 Capital Markets Union (CMU), 141 capitalism: Golden Age, 83; land as private property, 36; Primitive Accumulation concept, 18 Cerberus Capital Management, 136, 137 cholera, 70, 73 Churchill, Winston, 76–7, 189 Clark, John Bates, 48–51, 57–9 classical economics, 17, 38, 45, 48, 70 co-ownership housing, 72, 86 coal industry, 69 collateral: commercial real estate, 148; land as, 7, 20–1, 127–8, 160; see also home equity withdrawal collectivisation, 43 commercial real estate (CRE), 148–50; bank lending, 118–19, 118, 130, 148; credit bubbles and crises, 111, 148–9; data sets, 63; effect of UK vote to leave EU, 150; foreign investment, 149; investment returns, 148, 149–50; and Japanese crisis, 151–3; rating lists, 202; time-limited leases, 214 common agricultural policy, 33, 122–3 communications technology, 9 Community Land Trusts, 72, 198–9, 214, 221 commuting, 27 Competition, Credit and Control Act (1971), 130 compulsory purchase: ‘hope value’ court judgments, 88; housing construction, 80–1; infrastructure projects, 31, 73, 196–7, 222 conservation areas, 32 construction industry see housing construction industry consumption: affected by house deposit saving, 145; and asset-based wealth, 123–4; consumption-to-income ratio trends, 143–4, 144; equity release and consumer demand, 145–7, 146; and house prices, 147; and inequality, 185–7 cooperative housing, 72, 215 Corn Laws, 43, 69–70 corporate income tax, 168–9 council tax, 104, 201, 202 credit conditions index, 143–4, 144 credit controls, 132 credit liberalisation, 144 Crown Estate, 19, 31 Darrow, Charles, 47 de Soto, Hernando, 21 debt, public sector debt, 219–21 debt-to-income ratio, 115–16, 116, 139, 159, 186 defaults, mortgage lending, 141 deindustrialisation, 168 Denmark: land value taxes, 204; size of new-builds, 97 developing economies, and private property, 21–2 development charge, 82 digital economy, 9 Eastern Europe, serfdom, 23–4 Eccles, Marriner, 186–7 economic growth: dependence on land values, 190–1; and homeownership, 21–2 economic modelling, 50–1, 155, 218 economic rent: Crown Estate, 31; determined by collective rather than individual investment, 40; financial sector, 44, 184; infrastructure projects, 194–5, 196–7; and land, 39–44, 56–7; and land taxes, 34–5, 45–8, 76–7, 199, 222; and landownership, 10–13, 25; oil sector, 44; urban areas, 41–2, 73–4 economic theory: landownership, 16–18; marginal productivity theory, 49–50, 51, 56, 57–9, 165–7; shortcomings, 64–5, 191–2, 217; teaching reform proposals, 218 Edinburgh New Town, 66, 71, 80 eminent domain theory, 16 Enlightenment, 16 equity release see home equity withdrawal European Investment Bank, 210 European Union: Capital Markets Union (CMU), 141; common agricultural policy, 33, 122–3; full-recourse mortgage loans, 141–2; government debt, 220; UK decision to leave, 150, 160 Eurostat, 64, 219 factory workers, accommodation, 71 feudal system, 18, 19, 32 financial crisis (2007-8): causes, 153–4, 159–60, 186–7; effect on mortgages, 100; and house and land prices, 101, 140; Northern Rock, 136–7; payment defaults, 123; UK banking collapse, 139–40 financial instability, 152–3, 154–5, 185–7 Financial Policy Committee, 155, 206 financial sector: economic rent, 44, 184; profitability, 184; reform proposals, 205–12; see also banks/banking financialisation, 120; declining wage share in national income, 169; land, 14, 110–12; land and property, 160 First World War, 77 Fisher, Irving, 152 Florida, credit-driven bubbles, 111 foreign exchange controls, 132 France: feudal system, 32; Livrét A accounts, 210; mortgage market structure, 156; private tenancy, 32; residential property wealth, 9, 10 French Physiocrats, 38 Friedman, Milton, 87 Garden City movement, 72, 75–6 GDP: and bank lending by sector, 118–19, 118; and declining wage share, 169; and domestic mortgage lending, 118, 156–8, 156; and home equity withdrawal, 146; and household debt, 151; and outstanding credit loans, 117; and property wealth, 9–10, 10 George, Henry, 12, 25, 34, 45, 58, 60–1, 76, 87, 199; Progress and Poverty, 40–1, 46–7 Germany: business relationship banking, 208–9; credit controls, 207; economic success and low homeownership, 215; house price to income ratio, 112, 114; mortgage market structure and homeownership, 156, 157–8; private tenancy, 32 Gini coefficient, 163, 177, 178 globalisation, 167–8, 169 Great Depression, 186–7 Great Moderation, 154, 191 Grotius, Hugo, 16 Halifax Bank of Scotland (HBOS), 139 health problems, and inequality, 185 help-to-buy schemes, 122 Henry VIII, King, 20 high-rise buildings, 57 Hill, Octavia, 71 home equity withdrawal: contribution to consumer demand, 145–7, 146; and financial crisis, 187; and living standards, 180; and mortgage market structure, 156–7, 156; to finance consumer goods, 127, 133 homeownership: benefits, 101; difficulties in saving for, rent trap, 106; downward trend, 83, 103, 178; as financial asset, 63; housing costs, 179; increased unemployment and reduced labour mobility, 27–8, 215; interwar growth, 78; investment opportunity, 92; low-supply equilibrium, 102; and mortgage market structure, 156–8, 156; mutual co-ownership, 86; political and electoral dominance, 24–5, 92; Right to Buy policy, 89, 90–1, 103; rise in 1970s/80s, 86; second homes, 160; trends, 106–7, 107 Hong Kong, Mass Transit Railway, 195 house building see housing construction industry house prices: boom and bust, 88, 99; and consumer demand, 147; and credit availability, 116–18; financial crisis collapse, 140; and growing inequality, 177–8; house price-credit feedback cycle, 119–24; increase with buy-to-let mortgages, 134; low-supply equilibrium, 102; negative equity, 123, 133–4; price-to-income ratios, 99, 100, 112–14, 114, 139, 183, 183; and real disposable income, 115–16, 116; replacement cost vs market price, 6; rise due to insufficient supply, 63; volatility, 8, 8, 112–14, 114; volatility reduced by land taxes, 200 Housing Act (1924), 78 Housing Act (1980), 89 Housing Act (1988), 89 housing associations, 72, 82, 83, 93 housing benefit, 34, 96, 106 housing construction industry: barriers to entry, 97; building clubs, 72; compulsory land purchase, 80–1; concentration, 96–7; costs, 8, 95; development charge, 82; effect of financial crisis, 101; land banks (with planning permission), 96–7, 101; peak, 82; poor design quality, 97; private house building, 78; size trends, 97; speculative house building, 93, 94–5, 96; trends, 82–5, 82, 83 housing costs: by tenure type, 179; and inequality, 179–80 housing demand, 63, 114 Housing, Town Planning, &c.

Money Mischief: Episodes in Monetary History by Milton Friedman

Bretton Woods, British Empire, business cycle, classic study, currency peg, double entry bookkeeping, fiat currency, financial innovation, fixed income, floating exchange rates, foreign exchange controls, full employment, German hyperinflation, income per capita, law of one price, Money creation, money market fund, oil shock, price anchoring, price stability, Savings and loan crisis, systematic bias, Tax Reform Act of 1986, transaction costs

It adjusted to the further appreciation of its currency vis-a-vis non-U.S. currencies by permitting prices and wages to adjust. The example is blurred because most of the appreciation of the U.S. dollar occurred before Hong Kong unified its currency with the U.S. dollar. Pegged exchange rates can be maintained for a time by governmentally arranged capital flows, by foreign exchange controls, or by restrictions on international trade. But there is ample evidence by now that these are at best temporary expedients and generally lead to the conversion of minor problems into major crises. That was certainly the experience under Bretton Woods before 1971. Exchange rate changes were numerous and often massive.

…

None of these arrangements has been able to avoid exchange crises and exchange rate changes, and several have simply broken down. The EMS has been working reasonably well because Germany has been willing to play the role that the United States played under Bretton Woods, of pursuing a moderately noninflationary policy and tolerating capital movements and foreign exchange controls imposed by other member countries. I suspect that EMS, too, will break down if Germany ever becomes unwilling to follow those policies, as it well may as a result of the unification of East and West Germany. Many observers give the EMS credit for enabling its members, notably France, to reduce inflation in recent years.

Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism by Ha-Joon Chang

"there is no alternative" (TINA), "World Economic Forum" Davos, affirmative action, Albert Einstein, Big bang: deregulation of the City of London, bilateral investment treaty, borderless world, Bretton Woods, British Empire, Brownian motion, business cycle, call centre, capital controls, central bank independence, colonial rule, Corn Laws, corporate governance, David Ricardo: comparative advantage, Deng Xiaoping, Doha Development Round, en.wikipedia.org, export processing zone, falling living standards, Fellow of the Royal Society, financial deregulation, financial engineering, fixed income, foreign exchange controls, Francis Fukuyama: the end of history, income inequality, income per capita, industrial robot, Isaac Newton, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, Kickstarter, land reform, liberal world order, liberation theology, low skilled workers, market bubble, market fundamentalism, Martin Wolf, means of production, mega-rich, moral hazard, Nelson Mandela, offshore financial centre, oil shock, price stability, principal–agent problem, Ronald Reagan, South Sea Bubble, structural adjustment programs, The Wealth of Nations by Adam Smith, trade liberalization, transfer pricing, urban sprawl, World Values Survey

If private enterprises worked well, that was fine; if they did not invest in important areas, the government had no qualms about setting up state-owned enterprises (SOEs); and if some private enterprises were mismanaged, the government often took them over, restructured them, and usually (but not always) sold them off again. The Korean government also had absolute control over scarce foreign exchange (violation of foreign exchange controls could be punished with the death penalty). When combined with a carefully designed list of priorities in the use of foreign exchange, it ensured that hard-earned foreign currencies were used for importing vital machinery and industrial inputs. The Korean government heavily controlled foreign investment as well, welcoming it with open arms in certain sectors while shutting it out completely in others, according to the evolving national development plan.

…

Before the Second World War, they didn’t need to – they were mostly making, rather than receiving, foreign investments. But, after the Second World War, when they started receiving large amounts of American, and then Japanese, investment, they also restricted FDI flows and imposed performance requirements. Until the 1970s, this was done mainly through foreign exchange controls. After these controls were abolished, informal performance requirements were used. Even the ostensibly foreign-investor-friendly UK government used a variety of ‘undertakings’ and ‘voluntary restrictions’ regarding local sourcing of components, production volumes and exporting.50 When Nissan established a UK plant in 1981, it was forced to procure 60% of value added locally, with a time scale over which this would rise to 80%.

Bad Samaritans: The Guilty Secrets of Rich Nations and the Threat to Global Prosperity by Ha-Joon Chang

"there is no alternative" (TINA), "World Economic Forum" Davos, affirmative action, Albert Einstein, banking crisis, Big bang: deregulation of the City of London, bilateral investment treaty, borderless world, Bretton Woods, British Empire, Brownian motion, business cycle, call centre, capital controls, central bank independence, colonial rule, Corn Laws, corporate governance, David Ricardo: comparative advantage, Deng Xiaoping, Doha Development Round, en.wikipedia.org, export processing zone, falling living standards, Fellow of the Royal Society, financial deregulation, financial engineering, fixed income, foreign exchange controls, Francis Fukuyama: the end of history, income inequality, income per capita, industrial robot, Isaac Newton, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, Kickstarter, land reform, liberal world order, liberation theology, low skilled workers, market bubble, market fundamentalism, Martin Wolf, means of production, mega-rich, moral hazard, Nelson Mandela, offshore financial centre, oil shock, price stability, principal–agent problem, Ronald Reagan, South Sea Bubble, structural adjustment programs, The Wealth of Nations by Adam Smith, trade liberalization, transfer pricing, urban sprawl, World Values Survey

If private enterprises worked well, that was fine; if they did not invest in important areas, the government had no qualms about setting up state-owned enterprises (SOEs); and if some private enterprises were mismanaged, the government often took them over, restructured them, and usually (but not always) sold them off again. The Korean government also had absolute control over scarce foreign exchange (violation of foreign exchange controls could be punished with the death penalty). When combined with a carefully designed list of priorities in the use of foreign exchange, it ensured that hard-earned foreign currencies were used for importing vital machinery and industrial inputs. The Korean government heavily controlled foreign investment as well, welcoming it with open arms in certain sectors while shutting it out completely in others, according to the evolving national development plan.

…

Before the Second World War, they didn’t need to – they were mostly making, rather than receiving, foreign investments. But, after the Second World War, when they started receiving large amounts of American, and then Japanese, investment, they also restricted FDI flows and imposed performance requirements. Until the 1970s, this was done mainly through foreign exchange controls. After these controls were abolished, informal performance requirements were used. Even the ostensibly foreign-investor-friendly UK government used a variety of ‘undertakings’ and ‘voluntary restrictions’ regarding local sourcing of components, production volumes and exporting.50 When Nissan established a UK plant in 1981, it was forced to procure 60% of value added locally, with a time scale over which this would rise to 80%.

Capitalism 4.0: The Birth of a New Economy in the Aftermath of Crisis by Anatole Kaletsky

"World Economic Forum" Davos, Alan Greenspan, bank run, banking crisis, Bear Stearns, behavioural economics, Benoit Mandelbrot, Berlin Wall, Black Swan, bond market vigilante , bonus culture, Bretton Woods, BRICs, business cycle, buy and hold, Carmen Reinhart, classic study, cognitive dissonance, collapse of Lehman Brothers, Corn Laws, correlation does not imply causation, creative destruction, credit crunch, currency manipulation / currency intervention, currency risk, David Ricardo: comparative advantage, deglobalization, Deng Xiaoping, eat what you kill, Edward Glaeser, electricity market, Eugene Fama: efficient market hypothesis, eurozone crisis, experimental economics, F. W. de Klerk, failed state, Fall of the Berlin Wall, financial deregulation, financial innovation, Financial Instability Hypothesis, floating exchange rates, foreign exchange controls, full employment, geopolitical risk, George Akerlof, global rebalancing, Goodhart's law, Great Leap Forward, Hyman Minsky, income inequality, information asymmetry, invisible hand, Isaac Newton, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, Kickstarter, laissez-faire capitalism, long and variable lags, Long Term Capital Management, low interest rates, mandelbrot fractal, market design, market fundamentalism, Martin Wolf, military-industrial complex, Minsky moment, Modern Monetary Theory, Money creation, money market fund, moral hazard, mortgage debt, Nelson Mandela, new economy, Nixon triggered the end of the Bretton Woods system, Northern Rock, offshore financial centre, oil shock, paradox of thrift, Pareto efficiency, Paul Samuelson, Paul Volcker talking about ATMs, peak oil, pets.com, Ponzi scheme, post-industrial society, price stability, profit maximization, profit motive, quantitative easing, Ralph Waldo Emerson, random walk, rent-seeking, reserve currency, rising living standards, Robert Shiller, Robert Solow, Ronald Reagan, Savings and loan crisis, seminal paper, shareholder value, short selling, South Sea Bubble, sovereign wealth fund, special drawing rights, statistical model, systems thinking, The Chicago School, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, too big to fail, Vilfredo Pareto, Washington Consensus, zero-sum game

Until 2005, the numbers behind what later came to be viewed as a malignant, cancerous growth of financial activity were actually moderate. The first big increase in consumer debt occurred around the world in the mid- 1980s, mostly the result of the abolition of oppressive restrictions on credit, such as America’s “Regulation Q”1 and Britain’s hire-purchase and foreign exchange controls.2 From 1983 and 1984 (when most of these regulations were lifted) and 1991, the ratio of U.S. household debt to disposable income increased by one-third, from 63 percent to 83 percent, as shown in Figure 7.1. It then stabilized at around this level for about a decade, before increasing again by about a third, from 83 percent of income in 1999 to 112 percent in 2005.

…

These regulations remained in effect until the Monetary Control Act of 1980 created the Depository Institutions Deregulation Committee with the express purpose of gradually dismantling them. R. Alton Gilbert, “Requiem for Regulation Q: What It Did and Why It Passed Away,” Federal Reserve Bank of St. Louis Review (February 1986): 22-37. 2 Britain imposed hire-purchase controls off and on from the late 1940s until 1982. Foreign exchange controls regulated foreign currency exchange, international trade and foreign investment in Britain from 1939 until 1979. See M. J. Artis and Mark P. Taylor, “Abolishing Exchange Control: The UK Experience,” Discussion Paper No. 294, Centre for Economic Policy Research (February 1989). 3 The FNMA thirty-year mortgage rate declined from 8.1 percent in 1999 to 5.8 percent in 2004 and to 6.2 percent in 2005.

The Economic Weapon by Nicholas Mulder

anti-communist, Boycotts of Israel, Bretton Woods, British Empire, capital controls, classic study, deglobalization, European colonialism, falling living standards, false flag, foreign exchange controls, global pandemic, guns versus butter model, Monroe Doctrine, power law, reserve currency, rising living standards, Suez crisis 1956, transatlantic slave trade, éminence grise

This paranoia assumed greater proportions because of the many channels through which Germany was still materially dependent on the rest of the world: its external creditors, its imports of raw materials, and the capital of foreign investors.57 In June the regime declared a partial moratorium on foreign debt repayment while embarking on a racial purge of its leading economic sectors.58 To preserve its limited foreign exchange reserves, the Reich government began to restrict drastically the amount of money that could be taken out of Germany and placed its industrial chambers of commerce under state control.59 In August, bureaus for foreign exchange control (Stellen für Devisenbewirtschaftung) began to restrict German citizens’ purchases of tickets on foreign ocean liners, effectively instituting a state ban on using U.S. and British shipping companies.60 Germany’s first major step toward a break with the Versailles order came on 14 October 1933, when the failure of disarmament talks sent Hitler into a rage.

…

The Simon-Morgenthau exchange also gave occasion to the rather awkward discovery by the British of the American version of their own Trading with the Enemy Act, which Roosevelt had already used for domestic purposes in 1933. The British could not understand how an economic warfare law targeting property could be reapplied for purposes of foreign exchange control, and they were quite appalled by the suggestion (ibid., Note from Hopkins to S. D. Waley, Phillips, and Warren Fisher, 20 December 1937, ff. 41–42). Treasury Permanent Secretary R. V. N. Hopkins cautioned that “economic sanctions designed to hamper the nature of war are intensely provocative and I should think the Japs are the last people on which to try them unless [a] battle fleet is over there” (handwritten comment on memorandum by Sir Frederick Leith-Ross, 20 December 1937, f. 38). 185.

Big Three in Economics: Adam Smith, Karl Marx, and John Maynard Keynes by Mark Skousen

Albert Einstein, banking crisis, behavioural economics, Berlin Wall, Bretton Woods, business climate, business cycle, creative destruction, David Ricardo: comparative advantage, delayed gratification, experimental economics, financial independence, Financial Instability Hypothesis, foreign exchange controls, full employment, Hernando de Soto, housing crisis, Hyman Minsky, inflation targeting, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kenneth Arrow, laissez-faire capitalism, liberation theology, liquidity trap, low interest rates, means of production, Meghnad Desai, microcredit, minimum wage unemployment, money market fund, open economy, paradox of thrift, Pareto efficiency, Paul Samuelson, Phillips curve, Post-Keynesian economics, price stability, pushing on a string, rent control, Richard Thaler, rising living standards, road to serfdom, Robert Shiller, Robert Solow, rolodex, Ronald Coase, Ronald Reagan, school choice, secular stagnation, Simon Kuznets, The Chicago School, The Theory of the Leisure Class by Thorstein Veblen, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, Tobin tax, Tragedy of the Commons, unorthodox policies, Vilfredo Pareto, zero-sum game

The other reason is the collapse of Marxist-inspired Soviet communism and the socialist central planning model in the early 1990s. Since then, globalization has opened the floodgates to freer economic policies, especially within developing countries. Nations that for decades engaged in systematic policies of nationalization, protectionism, import substitution, foreign exchange controls, and corporate cronyism have opened their borders to foreign investment, denationalization and privatization, deregulation, and other market policies. Even the World Bank, once a severe critic of the capitalist model, has shifted dramatically in favor of market solutions to underdevelopment problems (with some important exceptions).

Financial Market Meltdown: Everything You Need to Know to Understand and Survive the Global Credit Crisis by Kevin Mellyn

Alan Greenspan, asset-backed security, bank run, banking crisis, Bernie Madoff, bond market vigilante , bonus culture, Bretton Woods, business cycle, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, cuban missile crisis, deal flow, disintermediation, diversification, fiat currency, financial deregulation, financial engineering, financial innovation, financial intermediation, fixed income, foreign exchange controls, Francis Fukuyama: the end of history, George Santayana, global reserve currency, Greenspan put, Home mortgage interest deduction, inverted yield curve, Isaac Newton, joint-stock company, junk bonds, Kickstarter, liquidity trap, London Interbank Offered Rate, long peace, low interest rates, margin call, market clearing, mass immigration, Money creation, money market fund, moral hazard, mortgage tax deduction, Nixon triggered the end of the Bretton Woods system, Northern Rock, offshore financial centre, paradox of thrift, pattern recognition, pension reform, pets.com, Phillips curve, plutocrats, Ponzi scheme, profit maximization, proprietary trading, pushing on a string, reserve currency, risk tolerance, risk-adjusted returns, road to serfdom, Ronald Reagan, shareholder value, Silicon Valley, South Sea Bubble, statistical model, Suez canal 1869, systems thinking, tail risk, The Great Moderation, the long tail, the new new thing, the payments system, too big to fail, value at risk, very high income, War on Poverty, We are all Keynesians now, Y2K, yield curve

THE PITY OF WAR That question was soon answered by the First World War. The answer was: Government should regulate everything. With so-called war socialism in the Kaiser’s Germany as an unspoken model, Britain and the United States regulated wages, prices, interest rates, transportation—the whole shooting match. Foreign exchange controls were slapped on, trade embargoed, and the gold standard was suspended. This was the only way to mobilize the resources required to fight a ‘‘total war’’ involving tens of million of combatants. It was full of absurdities and glitches, but it was tolerable for a few years. Above all, it was seen to be fair.

The Long Good Buy: Analysing Cycles in Markets by Peter Oppenheimer

Alan Greenspan, asset allocation, banking crisis, banks create money, barriers to entry, behavioural economics, benefit corporation, Berlin Wall, Big bang: deregulation of the City of London, Black Monday: stock market crash in 1987, book value, Bretton Woods, business cycle, buy and hold, Cass Sunstein, central bank independence, collective bargaining, computer age, credit crunch, data science, debt deflation, decarbonisation, diversification, dividend-yielding stocks, equity premium, equity risk premium, Fall of the Berlin Wall, financial engineering, financial innovation, fixed income, Flash crash, foreign exchange controls, forward guidance, Francis Fukuyama: the end of history, general purpose technology, gentrification, geopolitical risk, George Akerlof, Glass-Steagall Act, household responsibility system, housing crisis, index fund, invention of the printing press, inverted yield curve, Isaac Newton, James Watt: steam engine, Japanese asset price bubble, joint-stock company, Joseph Schumpeter, Kickstarter, Kondratiev cycle, liberal capitalism, light touch regulation, liquidity trap, Live Aid, low interest rates, market bubble, Mikhail Gorbachev, mortgage debt, negative equity, Network effects, new economy, Nikolai Kondratiev, Nixon shock, Nixon triggered the end of the Bretton Woods system, oil shock, open economy, Phillips curve, price stability, private sector deleveraging, Productivity paradox, quantitative easing, railway mania, random walk, Richard Thaler, risk free rate, risk tolerance, risk-adjusted returns, Robert Shiller, Robert Solow, Ronald Reagan, Savings and loan crisis, savings glut, secular stagnation, Shenzhen special economic zone , Simon Kuznets, South Sea Bubble, special economic zone, stocks for the long run, tail risk, Tax Reform Act of 1986, technology bubble, The Great Moderation, too big to fail, total factor productivity, trade route, tulip mania, yield curve

Since then, many things in economies and society have changed beyond recognition. The world has become more interconnected; the Cold War ended and the Soviet Empire unravelled, heralding an era of ‘globalisation’. When I began my career, the UK had only recently, in 1979, removed restrictions on foreign exchange controls (for the first time in 90 years), while France and Italy still had them in place, only abolishing them in 1990.1 Economic conditions have also transformed, and several key fundamental macro drivers have shifted dramatically: over the past three decades, inflation has fallen persistently and interest rates have collapsed; 10-year government bond yields in the United States have come down from over 11% to 2%, Fed funds rates have fallen from over 8% to 1.5% and currently one-quarter of all government bonds globally have a negative yield.

The Money Machine: How the City Works by Philip Coggan

activist fund / activist shareholder / activist investor, algorithmic trading, asset-backed security, Bear Stearns, Bernie Madoff, Big bang: deregulation of the City of London, Black Monday: stock market crash in 1987, bond market vigilante , bonus culture, Bretton Woods, call centre, capital controls, carried interest, central bank independence, collateralized debt obligation, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency risk, disintermediation, diversification, diversified portfolio, Edward Lloyd's coffeehouse, endowment effect, financial deregulation, financial independence, floating exchange rates, foreign exchange controls, Glass-Steagall Act, guns versus butter model, Hyman Minsky, index fund, intangible asset, interest rate swap, inverted yield curve, Isaac Newton, James Carville said: "I would like to be reincarnated as the bond market. You can intimidate everybody.", joint-stock company, junk bonds, labour market flexibility, large denomination, London Interbank Offered Rate, Long Term Capital Management, low interest rates, merger arbitrage, Michael Milken, money market fund, moral hazard, mortgage debt, negative equity, Nick Leeson, Northern Rock, pattern recognition, proprietary trading, purchasing power parity, quantitative easing, reserve currency, Right to Buy, Ronald Reagan, shareholder value, South Sea Bubble, sovereign wealth fund, technology bubble, time value of money, too big to fail, tulip mania, Washington Consensus, yield curve, zero-coupon bond

That system, generally known as Bretton Woods, combined fixed exchange rates with strict controls on capital flows, so restricting the scope for financial market activity. Under fixed exchange rates, currency speculation was only profitable at occasional times, such as when Britain was forced to devalue sterling in 1967. Foreign-exchange controls also made it difficult for investors to buy equities outside their home markets. That reduced the scope for share trading and ensured that the UK equity market was a protected haven, dominated by small firms operating in a climate which author Philip Augar has described as ‘gentlemanly capitalism’.

Nine Crises: Fifty Years of Covering the British Economy From Devaluation to Brexit by William Keegan

Alan Greenspan, banking crisis, Bear Stearns, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, Bretton Woods, Brexit referendum, British Empire, capital controls, congestion charging, deindustrialization, Donald Trump, Etonian, eurozone crisis, Fall of the Berlin Wall, financial engineering, financial innovation, financial thriller, floating exchange rates, foreign exchange controls, full employment, gig economy, inflation targeting, Jeremy Corbyn, Just-in-time delivery, light touch regulation, liquidity trap, low interest rates, Martin Wolf, military-industrial complex, moral hazard, negative equity, Neil Kinnock, Nixon triggered the end of the Bretton Woods system, non-tariff barriers, North Sea oil, Northern Rock, oil shock, Parkinson's law, Paul Samuelson, pre–internet, price mechanism, quantitative easing, Ronald Reagan, school vouchers, short selling, South Sea Bubble, Suez crisis 1956, The Chicago School, transaction costs, tulip mania, Winter of Discontent, Yom Kippur War

He puts a historical finger on it when concluding that all this was ‘a product of the neoliberal culture of the time that talked about better regulation but in fact favoured even more deregulation’. Although I have referred above to proximate causes and the Thucydidean ‘truest cause’, there were indeed historical factors contributing to this neoliberal culture. In the UK, these began with the way that Bank officials noticed after the removal of foreign exchange controls in 1979 that most of the subsequent trade was being conducted by foreign banks. They thought, in what turned out to be their naivety, that opening up the City and exposing it to greater competition from overseas financial institutions would somehow strengthen the City’s traditional institutions.

Losing Control: The Emerging Threats to Western Prosperity by Stephen D. King

"World Economic Forum" Davos, Admiral Zheng, Alan Greenspan, asset-backed security, barriers to entry, Berlin Wall, Bernie Madoff, Bretton Woods, BRICs, British Empire, business cycle, capital controls, Celtic Tiger, central bank independence, collateralized debt obligation, corporate governance, credit crunch, crony capitalism, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, demographic dividend, demographic transition, Deng Xiaoping, Diane Coyle, Fall of the Berlin Wall, financial deregulation, financial innovation, fixed income, foreign exchange controls, Francis Fukuyama: the end of history, full employment, G4S, George Akerlof, German hyperinflation, Gini coefficient, Great Leap Forward, guns versus butter model, hiring and firing, income inequality, income per capita, inflation targeting, invisible hand, Isaac Newton, junk bonds, knowledge economy, labour market flexibility, labour mobility, liberal capitalism, low interest rates, low skilled workers, market clearing, Martin Wolf, mass immigration, Meghnad Desai, Mexican peso crisis / tequila crisis, Naomi Klein, new economy, old age dependency ratio, Paul Samuelson, Ponzi scheme, price mechanism, price stability, purchasing power parity, rent-seeking, reserve currency, rising living standards, Ronald Reagan, Savings and loan crisis, savings glut, Silicon Valley, Simon Kuznets, sovereign wealth fund, spice trade, statistical model, technology bubble, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Market for Lemons, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, transaction costs, Washington Consensus, We are all Keynesians now, women in the workforce, working-age population, Y2K, Yom Kippur War

At approaching 100 per cent of US national income, this was a huge legacy of the military expenditures associated with the Second World War. Almost all this debt was funded by Americans who were happy to lend to their government. Less than 2 per cent of the total was funded by foreigners, partly because of a wave of capital and foreign-exchange controls throughout the world. By 2008, US government debt had risen to $9.6trn. As a share of national income, this stood at 68 per cent, lower than the immediate post-war extremes but, nevertheless, a sizeable increase compared with the 1981 trough of 33 per cent. Foreign participation had grown hugely.

The Marshall Plan: Dawn of the Cold War by Benn Steil

Albert Einstein, Alistair Cooke, An Inconvenient Truth, anti-communist, Berlin Wall, Bretton Woods, Brexit referendum, British Empire, business cycle, Carmen Reinhart, centre right, currency manipulation / currency intervention, deindustrialization, democratizing finance, disintermediation, Dissolution of the Soviet Union, Donald Trump, eurozone crisis, facts on the ground, Fall of the Berlin Wall, foreign exchange controls, full employment, imperial preference, invisible hand, Kenneth Rogoff, kremlinology, land reform, Mikhail Gorbachev, Monroe Doctrine, new economy, open economy, Potemkin village, RAND corporation, Ronald Reagan, scientific management, structural adjustment programs, the market place, trade liberalization, Transnistria, Winter of Discontent, Works Progress Administration, éminence grise

., 213, 219–20, 258, 282, 295, 301–2, 317, 413 elections, West Germany, 79–80, 236–37, 240, 254, 303–4, 335–37, 379, 381, 382 electricity, 324, 344 Elsey, George, 41, 42, 43–44, 220, 414 Erdoğan, Recep Tayyip, 392, 395, 414 Erhard, Ludwig, 274–75, 335, 361, 365, 414 Ertegün, Mehmet Münir, 24 espionage, 79, 241, 268–69, 277, 279, 282, 283, 284, 298, 319 Estonia, 73, 400, 401 Ethridge, Mark, 26, 414 Eurocommunism, 180–89, 191, 193–94, 210, 227–28, 315, 353 Europe, Eastern: Cominform programs for, 180, 182, 184, 185–86, 235–36, 257, 349, 371 Iron Curtain division of, 10, 83, 102, 109, 121, 189, 194, 212, 259, 378, 411 Marshall Plan rejected by, 135–45, 146, 235–45 Soviet domination of, 23, 70, 80–81, 82, 91, 108, 123, 138, 236–37, 242–44, 250–51, 259, 278, 324, 370–72, 390 Stalin’s policies on, 23, 70, 79, 80–81, 82, 91, 108, 123, 138, 236–37, 242–44, 250–51, 259, 278, 324, 335–36, 337, 370–72, 390 Warsaw Pact countries in, 275, 277, 379, 383–84, 387, 392, 393, 399 Europe, Western: banking sector in, 221, 269, 285, 286, 348, 358 capitalism in, x, 10, 16–17, 57, 60, 73, 82, 100, 123, 126, 132, 138, 179, 186, 187–88, 209, 239, 275, 330–31, 335, 359, 386, 393, 520n communist parties in, 19–20, 180–89, 191, 193–94, 210, 227–28, 315, 353 consumer spending in, 95, 151, 158, 166, 186–97 credit support in, 11, 76–77, 106–7, 108, 121, 154, 362 currency reform in, 153–55, 159, 161, 220, 255, 270–72, 281, 285, 304, 307–8, 355, 358, 360–61, 367 customs barriers in, 66, 100–101 customs union for, 159, 162, 165, 173–74, 379; see also Benelux deficits in, 21, 61, 161–62, 358–59, 362, 446–49, 570n democracy in, 4, 8, 36, 37, 60, 105, 119, 126, 142, 180, 182, 192, 194, 197, 206, 229, 242–44, 256, 258, 259, 282, 335, 336, 359, 369, 392, 393, 395, 396, 400 dictatorships in, 29, 61, 71, 248, 503n–4n dollar reserves of, 21, 22, 94, 95, 107, 154, 155, 161, 162, 165, 167, 170, 173, 186, 216, 220, 224, 227, 314, 344, 345, 347–48, 357, 363–64, 368, 370 exports of, 62, 67, 86, 105, 106–7, 153–54, 161, 168, 216, 221, 257, 263, 309, 331–32, 363–64, 369–70 food supplies in, 7, 64, 67, 68, 94, 106, 159, 161, 167, 190, 263, 272, 274, 279, 302, 307, 310, 342, 346, 353, 359, 361, 366–67, 369 foreign exchange controls for, 68, 140, 154, 165, 167, 172, 270–71, 344–45 free markets in, ix, 88, 100–101, 106–7, 158, 167–68, 185–97, 243, 330, 331–47, 348, 360, 369, 374, 402 gold reserves of, ix, 21, 26, 94, 95, 101, 154, 161, 216, 227, 344, 363 gross domestic product (GDP) of, 81, 86, 197, 342, 343, 348, 354, 358, 446–49 gross national product (GNP) of, 342, 351–52, 358 imports of, 62–63, 64, 81, 95, 153–54, 161, 216, 220, 314, 344, 355, 364, 369–70 Iron Curtain division and, 10, 83, 102, 109, 121, 189, 194, 212, 259, 378, 411 living standards in, 61, 65, 107, 162, 166, 168, 174, 221, 341, 359, 368 maps of, 42–43, 101, 177, 296, 456–60 Marshall Plan supported by, 118–19, 122, 126–28, 130, 132–33, 145, 146–60, 176, 189–91, 202–10, 214, 227–28, 305–7, 313–14, 326–28, 331–32, 352–54, 362–65 military security for, x, 33–34, 44, 150, 280, 302, 318–22, 325, 327, 335, 356, 369, 371, 373, 375, 379, 380–84, 385, 387–403, 415, 574n, 577n nationalism in, 79, 81, 181, 195, 310, 326, 336, 387, 400 political map (1943) for, 458 political map (1949) for, 459 price controls in, 168, 220, 221, 270, 307, 346, 361 production in, 77, 81–82, 94–95, 163, 168–69, 174, 366 protectionism in, 51, 66, 88, 100–101, 155–56, 158–59, 167–68, 172, 216, 223, 306, 363–65, 369 revolutionary violence in, 186–89 tariffs in, 51, 100, 158–59, 165, 223, 314, 401 totalitarianism in, 29, 61, 71, 89, 190–91, 212, 214, 248, 276, 503n–4n trade deficits in, 67–68, 70, 140, 141, 154, 173, 221, 307, 358, 362–65, 369–70 European Coal and Steel Community (ECSC), 153, 322 European Community (EC), 381, 387 European Economic Commission, 118, 174 European Economic Community (Common Market), 153, 188, 322 “European Group,” 227 European Payments Union (EPU), 154–55, 348, 362, 363, 364, 366, 572n European Recovery Program (ERP), see Marshall Plan European Union (EU), x, 322, 373, 375, 380–81, 384, 391, 393, 395–96, 401–3, 577n Export-Import Bank, U.S., 244, 568n–69n exports, 62, 67, 86, 105, 106–7, 153–54, 161, 168, 216, 221, 257, 263, 309, 331–32, 363–64, 369–70 Extraordinary Peoples’ Courts, 16 factories, 94–95 Falin, Valentin, 380–81 Farewell Address (Washington), 1, 3, 13, 27, 43, 97, 320 fascism, 2, 16, 80, 181, 184, 350 Federal Bureau of Investigation (FBI), 232 federalization, 80, 131, 169, 249 Federal Reserve System, 220, 221 Feierabend, Ladislav, 143, 414 Ferguson, Homer, 192, 415 Fifteen Weeks, The (Jones), 32, 418 fifth columns, 371 Finland, 2–3, 7, 19, 126, 148, 244–45, 251, 252, 395 first-charge principle, 64, 67 food supplies, 7, 64, 67, 68, 94, 106, 159, 161, 167, 190, 263, 272, 274, 279, 302, 307, 310, 342, 346, 353, 359, 361, 366–67, 369 see also starvation Foreign Affairs, 30–32, 43, 90–91, 198–99, 255–56, 326, 328, 395 Foreign Assistance Act (1948), 260, 568n–69n see also Marshall Plan “foreign entanglements,” 1, 3, 13, 27, 43, 97, 320 foreign exchange controls, 68, 140, 154, 165, 167, 172, 270–71, 344–45 Foreign Office, British, 125, 127, 158, 230 Foreign Policy Concept (FPC), 394–95, 401 foreign trade, 20, 22, 88, 124, 135, 149, 153–55, 269–70, 313, 325, 368 Forrestal, James, 30, 33, 87, 92, 214, 230, 316–17, 415 Four Power (Quadripartite) agreement, 95, 208, 273, 286, 288, 290–91, 308, 310, 323, 329–33, 361, 379–80 Fourteen Points, 88 France, 2, 10, 16, 18–20, 35, 47, 51, 61, 66–69, 94, 100, 101, 106, 108, 118, 121–23, 129, 131–33, 136, 140, 141, 147–53, 155, 161–64, 170, 175, 176, 181–91, 201, 203, 210, 211, 216, 221, 227, 230, 240, 249–55, 263, 295, 315, 318, 320, 322, 336, 342–56, 360–68, 374, 386, 403 Franco, Francisco, 148, 260 François-Poncet, André, 335–36, 415 Frankfurt, 106, 206, 272 Franklin, Benjamin, 340, 566n Franks, Oliver, 148, 155, 156, 159, 162, 168, 169, 170, 171, 172, 314, 415 Free Democratic Party (FDP), 304, 335 free markets, ix, 88, 100–101, 106–7, 158, 167–68, 185–97, 243, 330, 331–47, 348, 360, 369, 374, 402 French Communist Party, 66, 108, 121, 130, 170, 181–82, 185–88, 216–17, 230, 271, 349–51, 353, 355–56 French zone, 65, 66–67, 68, 69, 82, 249, 321, 542n Friedensburg, Ferdinand, 290, 310, 415 Gaddis, John Lewis, 375, 415 Gaidar, Yegor, 400, 415 Ganeval, Jean, 274, 279, 415 Gaullism, 64, 122, 271, 350–51, 353, 355–56 General Agreement on Tariffs and Trade (GATT), 172, 370 Geneva talks, 165–66 Genscher, Hans-Dietrich, 378, 415 George VI, King of England, 97, 124, 125 Georgia, 23–24, 72, 396–97, 398, 399, 402 Gerashchenko, Vladimir, 157, 194, 415 German Communist Party (Kommunistische Partei Deutschlands) (KPD), 75–76, 79, 80, 204 Germany, East: communist control of, 75–76, 79, 80, 204 as German Democratic Republic (GDR), 336–37 postwar conditions in, 7–8 Soviet troops in, 237, 382–84 Stalin’s policies on, 79, 324, 335–36, 337, 372 Volksrat (People’s Council) of, 336 see also Berlin, East Germany, Nazi, 18, 27, 34, 39, 47, 60, 73, 79, 80–81, 188, 215, 238, 242, 270, 276, 278, 358, 386 Germany, Occupied: Bizonia area in, 60, 68, 69, 76, 105–6, 149, 151, 153, 203, 206, 207, 208, 249, 274–75 British zone of, 18, 62, 65, 68, 208, 360–61 currency convertibility in, 22, 161–62, 165, 168, 269–70, 364–65, 382–83 deindustrialization of, 6, 8–9, 66, 81–82, 150–51, 152 demilitarization of, 75, 76, 281, 316 de-Nazification of, 80–81, 106, 161 federalization of, 80, 131, 169, 249 Four Power agreement for, 95, 208, 273, 286, 288, 290–91, 308, 310, 323, 329–33, 361, 379–80 French zone of, 65, 66–67, 68, 69, 82, 249, 321, 542n goods and services in, 95, 154, 158, 159, 325, 331–32, 342, 346, 349, 357, 361, 364, 370, 382 humanitarian crisis in, 87, 94–96, 189–90, 227, 277 industrial production of, 62, 68, 82, 105–7, 149, 151, 159, 160–62, 167, 176–84, 187, 189–90, 203, 211, 249, 255, 303, 304, 329–30, 341–42, 357, 359–61, 367, 374 map of, 457 military governors of, 64–65, 68, 89, 103–7, 134, 151–52, 203, 206–7, 270–75, 278, 282, 287–90, 302, 307–8, 321–25, 334, 357, 359–60, 367, 372 Morgenthau Plan for, 6, 8–9, 89, 90, 96, 99, 104–5, 115, 149, 151, 183, 209, 225–26, 357, 424 occupation zones in, 4, 63–64, 70, 457; see also specific zones pastoralization of, x, 66, 89, 115, 149, 161 reparations policy for, 4, 6–7, 60–71, 75–79, 85, 107, 109, 123, 128, 131, 176, 203–6, 249, 266, 276, 281, 310, 313, 325, 330, 331, 337, 356–58, 361, 362, 368 reunification of, 209, 326, 377–78, 379, 381, 382, 419, 427, 430, 557, 562, 570n Rhine region of, 82, 103, 252 Saar region of, 62, 66–67, 69, 150, 322, 356 Soviet zone of, 20, 79–81, 228, 270, 271, 272, 275, 280, 281–82, 285, 329–30, 336 starvation in, 15, 18, 89, 95, 99–100, 105, 170, 208–9, 244, 245, 275, 358 trade in, 20, 22, 88, 124, 135, 149, 153–55, 269–70, 313, 325, 368 U.S. zone of, 64–65, 68, 89–90, 104, 209, 270, 286, 308, 329–30, 360–61 war damage in, 342, 344, 357 winter conditions in (1947), 346, 569n–70n Germany, West: Acheson’s policies on, 298, 311, 312, 322, 326, 328, 332–34, 336 Basic Law (Grundgesetz) in, 329, 381 Bonn constitutional convention (1948) for, 289, 292, 322, 323, 330, 331 Bonn government of, 322, 325, 329 currency of (deutschmark) (DM), 22, 161–62, 165, 168, 269–76, 278, 279, 283–85, 286, 287, 288, 289, 292, 307–8, 311, 312, 325, 330, 358, 360–65, 382–84 elections in, 79–80, 236–37, 240, 254, 303–4, 335–37, 379, 381, 382 reconstruction of, 51, 118–19, 140–41, 149–50, 206–10, 313–14, 336, 357–62, 378–79 see also Berlin, West Geschke, Ottomar, 303, 415 Gibbon, Edward, 328 Gilbert, Charles, 200, 415 gold reserves, ix, 21, 26, 94, 95, 101, 154, 161, 216, 227, 344, 363 Gomułka, Władysław, 185, 415 goods and services, 95, 154, 158, 159, 325, 331–32, 342, 346, 349, 357, 361, 364, 370, 382 Gorbachev, Mikhail, 378, 379, 381–82, 383, 387, 388, 391, 392, 397, 415 Gore, Al, 374, 416 Gottwald, Klement, 138, 139, 142, 143, 237, 238–39, 240, 242, 244, 266, 416 Grachev, Pavel, 387, 416 grain supplies, 170, 237, 243–44, 298, 353 Grand Alliance, 29 Grand Strategy, 403–4 Great Britain, 2, 3, 10, 11, 19–26, 35–39, 47, 51, 62, 63, 74, 76, 81, 85, 89, 94, 97, 99, 101, 106, 123–32, 136, 140, 149, 155, 159, 161–73, 190, 222, 227, 235, 249, 251, 255, 267, 282, 307, 345, 348, 349, 360, 363, 367, 368, 386, 403 Great Depression, 51 Great Powers, 141, 175–76 Greece, 16, 18–19, 21, 22, 26, 31–39, 40, 42, 44–52, 87, 94, 147, 156–57, 160, 166, 175, 185, 213, 245, 259–60, 266, 269, 342, 343, 374, 509n Griffis, Stanton, 137, 416 Gromyko, Andrei, 10, 49, 125, 267–69, 333, 400, 416 gross domestic product (GDP), 81, 86, 197, 342, 343, 348, 354, 358, 446–49 gross national product (GNP), 342, 351–52, 358 Grotewohl, Otto, 80, 336–37, 416 Grundgesetz (Basic Law), 329, 381 guerrilla movements, 48 Haffner, Sebastian, 175, 416 Hála, František, 144, 416 Hall, Alvin, 270, 416 Halle, Louis, Jr., 321, 386, 416 Halleck, Charles, 192, 416 Halvorsen, Gail, 302, 416 Hamilton, Alexander, 27 Harding, Warren G., 88 Harriman, W.

…

., 244, 568n–69n exports, 62, 67, 86, 105, 106–7, 153–54, 161, 168, 216, 221, 257, 263, 309, 331–32, 363–64, 369–70 Extraordinary Peoples’ Courts, 16 factories, 94–95 Falin, Valentin, 380–81 Farewell Address (Washington), 1, 3, 13, 27, 43, 97, 320 fascism, 2, 16, 80, 181, 184, 350 Federal Bureau of Investigation (FBI), 232 federalization, 80, 131, 169, 249 Federal Reserve System, 220, 221 Feierabend, Ladislav, 143, 414 Ferguson, Homer, 192, 415 Fifteen Weeks, The (Jones), 32, 418 fifth columns, 371 Finland, 2–3, 7, 19, 126, 148, 244–45, 251, 252, 395 first-charge principle, 64, 67 food supplies, 7, 64, 67, 68, 94, 106, 159, 161, 167, 190, 263, 272, 274, 279, 302, 307, 310, 342, 346, 353, 359, 361, 366–67, 369 see also starvation Foreign Affairs, 30–32, 43, 90–91, 198–99, 255–56, 326, 328, 395 Foreign Assistance Act (1948), 260, 568n–69n see also Marshall Plan “foreign entanglements,” 1, 3, 13, 27, 43, 97, 320 foreign exchange controls, 68, 140, 154, 165, 167, 172, 270–71, 344–45 Foreign Office, British, 125, 127, 158, 230 Foreign Policy Concept (FPC), 394–95, 401 foreign trade, 20, 22, 88, 124, 135, 149, 153–55, 269–70, 313, 325, 368 Forrestal, James, 30, 33, 87, 92, 214, 230, 316–17, 415 Four Power (Quadripartite) agreement, 95, 208, 273, 286, 288, 290–91, 308, 310, 323, 329–33, 361, 379–80 Fourteen Points, 88 France, 2, 10, 16, 18–20, 35, 47, 51, 61, 66–69, 94, 100, 101, 106, 108, 118, 121–23, 129, 131–33, 136, 140, 141, 147–53, 155, 161–64, 170, 175, 176, 181–91, 201, 203, 210, 211, 216, 221, 227, 230, 240, 249–55, 263, 295, 315, 318, 320, 322, 336, 342–56, 360–68, 374, 386, 403 Franco, Francisco, 148, 260 François-Poncet, André, 335–36, 415 Frankfurt, 106, 206, 272 Franklin, Benjamin, 340, 566n Franks, Oliver, 148, 155, 156, 159, 162, 168, 169, 170, 171, 172, 314, 415 Free Democratic Party (FDP), 304, 335 free markets, ix, 88, 100–101, 106–7, 158, 167–68, 185–97, 243, 330, 331–47, 348, 360, 369, 374, 402 French Communist Party, 66, 108, 121, 130, 170, 181–82, 185–88, 216–17, 230, 271, 349–51, 353, 355–56 French zone, 65, 66–67, 68, 69, 82, 249, 321, 542n Friedensburg, Ferdinand, 290, 310, 415 Gaddis, John Lewis, 375, 415 Gaidar, Yegor, 400, 415 Ganeval, Jean, 274, 279, 415 Gaullism, 64, 122, 271, 350–51, 353, 355–56 General Agreement on Tariffs and Trade (GATT), 172, 370 Geneva talks, 165–66 Genscher, Hans-Dietrich, 378, 415 George VI, King of England, 97, 124, 125 Georgia, 23–24, 72, 396–97, 398, 399, 402 Gerashchenko, Vladimir, 157, 194, 415 German Communist Party (Kommunistische Partei Deutschlands) (KPD), 75–76, 79, 80, 204 Germany, East: communist control of, 75–76, 79, 80, 204 as German Democratic Republic (GDR), 336–37 postwar conditions in, 7–8 Soviet troops in, 237, 382–84 Stalin’s policies on, 79, 324, 335–36, 337, 372 Volksrat (People’s Council) of, 336 see also Berlin, East Germany, Nazi, 18, 27, 34, 39, 47, 60, 73, 79, 80–81, 188, 215, 238, 242, 270, 276, 278, 358, 386 Germany, Occupied: Bizonia area in, 60, 68, 69, 76, 105–6, 149, 151, 153, 203, 206, 207, 208, 249, 274–75 British zone of, 18, 62, 65, 68, 208, 360–61 currency convertibility in, 22, 161–62, 165, 168, 269–70, 364–65, 382–83 deindustrialization of, 6, 8–9, 66, 81–82, 150–51, 152 demilitarization of, 75, 76, 281, 316 de-Nazification of, 80–81, 106, 161 federalization of, 80, 131, 169, 249 Four Power agreement for, 95, 208, 273, 286, 288, 290–91, 308, 310, 323, 329–33, 361, 379–80 French zone of, 65, 66–67, 68, 69, 82, 249, 321, 542n goods and services in, 95, 154, 158, 159, 325, 331–32, 342, 346, 349, 357, 361, 364, 370, 382 humanitarian crisis in, 87, 94–96, 189–90, 227, 277 industrial production of, 62, 68, 82, 105–7, 149, 151, 159, 160–62, 167, 176–84, 187, 189–90, 203, 211, 249, 255, 303, 304, 329–30, 341–42, 357, 359–61, 367, 374 map of, 457 military governors of, 64–65, 68, 89, 103–7, 134, 151–52, 203, 206–7, 270–75, 278, 282, 287–90, 302, 307–8, 321–25, 334, 357, 359–60, 367, 372 Morgenthau Plan for, 6, 8–9, 89, 90, 96, 99, 104–5, 115, 149, 151, 183, 209, 225–26, 357, 424 occupation zones in, 4, 63–64, 70, 457; see also specific zones pastoralization of, x, 66, 89, 115, 149, 161 reparations policy for, 4, 6–7, 60–71, 75–79, 85, 107, 109, 123, 128, 131, 176, 203–6, 249, 266, 276, 281, 310, 313, 325, 330, 331, 337, 356–58, 361, 362, 368 reunification of, 209, 326, 377–78, 379, 381, 382, 419, 427, 430, 557, 562, 570n Rhine region of, 82, 103, 252 Saar region of, 62, 66–67, 69, 150, 322, 356 Soviet zone of, 20, 79–81, 228, 270, 271, 272, 275, 280, 281–82, 285, 329–30, 336 starvation in, 15, 18, 89, 95, 99–100, 105, 170, 208–9, 244, 245, 275, 358 trade in, 20, 22, 88, 124, 135, 149, 153–55, 269–70, 313, 325, 368 U.S. zone of, 64–65, 68, 89–90, 104, 209, 270, 286, 308, 329–30, 360–61 war damage in, 342, 344, 357 winter conditions in (1947), 346, 569n–70n Germany, West: Acheson’s policies on, 298, 311, 312, 322, 326, 328, 332–34, 336 Basic Law (Grundgesetz) in, 329, 381 Bonn constitutional convention (1948) for, 289, 292, 322, 323, 330, 331 Bonn government of, 322, 325, 329 currency of (deutschmark) (DM), 22, 161–62, 165, 168, 269–76, 278, 279, 283–85, 286, 287, 288, 289, 292, 307–8, 311, 312, 325, 330, 358, 360–65, 382–84 elections in, 79–80, 236–37, 240, 254, 303–4, 335–37, 379, 381, 382 reconstruction of, 51, 118–19, 140–41, 149–50, 206–10, 313–14, 336, 357–62, 378–79 see also Berlin, West Geschke, Ottomar, 303, 415 Gibbon, Edward, 328 Gilbert, Charles, 200, 415 gold reserves, ix, 21, 26, 94, 95, 101, 154, 161, 216, 227, 344, 363 Gomułka, Władysław, 185, 415 goods and services, 95, 154, 158, 159, 325, 331–32, 342, 346, 349, 357, 361, 364, 370, 382 Gorbachev, Mikhail, 378, 379, 381–82, 383, 387, 388, 391, 392, 397, 415 Gore, Al, 374, 416 Gottwald, Klement, 138, 139, 142, 143, 237, 238–39, 240, 242, 244, 266, 416 Grachev, Pavel, 387, 416 grain supplies, 170, 237, 243–44, 298, 353 Grand Alliance, 29 Grand Strategy, 403–4 Great Britain, 2, 3, 10, 11, 19–26, 35–39, 47, 51, 62, 63, 74, 76, 81, 85, 89, 94, 97, 99, 101, 106, 123–32, 136, 140, 149, 155, 159, 161–73, 190, 222, 227, 235, 249, 251, 255, 267, 282, 307, 345, 348, 349, 360, 363, 367, 368, 386, 403 Great Depression, 51 Great Powers, 141, 175–76 Greece, 16, 18–19, 21, 22, 26, 31–39, 40, 42, 44–52, 87, 94, 147, 156–57, 160, 166, 175, 185, 213, 245, 259–60, 266, 269, 342, 343, 374, 509n Griffis, Stanton, 137, 416 Gromyko, Andrei, 10, 49, 125, 267–69, 333, 400, 416 gross domestic product (GDP), 81, 86, 197, 342, 343, 348, 354, 358, 446–49 gross national product (GNP), 342, 351–52, 358 Grotewohl, Otto, 80, 336–37, 416 Grundgesetz (Basic Law), 329, 381 guerrilla movements, 48 Haffner, Sebastian, 175, 416 Hála, František, 144, 416 Hall, Alvin, 270, 416 Halle, Louis, Jr., 321, 386, 416 Halleck, Charles, 192, 416 Halvorsen, Gail, 302, 416 Hamilton, Alexander, 27 Harding, Warren G., 88 Harriman, W.

Foolproof: Why Safety Can Be Dangerous and How Danger Makes Us Safe by Greg Ip

Affordable Care Act / Obamacare, Air France Flight 447, air freight, airport security, Alan Greenspan, Asian financial crisis, asset-backed security, bank run, banking crisis, Bear Stearns, behavioural economics, Boeing 747, book value, break the buck, Bretton Woods, business cycle, capital controls, central bank independence, cloud computing, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency peg, Daniel Kahneman / Amos Tversky, diversified portfolio, double helix, endowment effect, Exxon Valdez, Eyjafjallajökull, financial deregulation, financial innovation, Financial Instability Hypothesis, floating exchange rates, foreign exchange controls, full employment, global supply chain, hindsight bias, Hyman Minsky, Joseph Schumpeter, junk bonds, Kenneth Rogoff, lateral thinking, Lewis Mumford, London Whale, Long Term Capital Management, market bubble, Michael Milken, money market fund, moral hazard, Myron Scholes, Network effects, new economy, offshore financial centre, paradox of thrift, pets.com, Ponzi scheme, proprietary trading, quantitative easing, Ralph Nader, Richard Thaler, risk tolerance, Ronald Reagan, Sam Peltzman, savings glut, scientific management, subprime mortgage crisis, tail risk, technology bubble, TED Talk, The Great Moderation, too big to fail, transaction costs, union organizing, Unsafe at Any Speed, value at risk, William Langewiesche, zero-sum game

In 1931 it left gold, and the pound immediately fell about 25 percent against the dollar. The decline in the British exchange rate allowed it to restore competitiveness and to lower interest rates, which boosted demand. It also forced many of its trading partners to devalue; those that didn’t devalue imposed foreign exchange controls or raised tariffs. Economists now know that adherence to gold was a major contributor to the Great Depression. To maintain their parities, adherents were forced to keep interest rates higher and budgets balanced, which only tightened the vise on their domestic economies. Countries that abandoned gold escaped that vise and recovered much more quickly.

Barometer of Fear: An Insider's Account of Rogue Trading and the Greatest Banking Scandal in History by Alexis Stenfors

Alan Greenspan, Asian financial crisis, asset-backed security, bank run, banking crisis, Bear Stearns, Big bang: deregulation of the City of London, bonus culture, capital controls, collapse of Lehman Brothers, credit crunch, Credit Default Swap, Eugene Fama: efficient market hypothesis, eurozone crisis, financial deregulation, financial innovation, fixed income, foreign exchange controls, game design, Gordon Gekko, inflation targeting, information asymmetry, interest rate derivative, interest rate swap, London Interbank Offered Rate, loss aversion, mental accounting, millennium bug, Nick Leeson, Northern Rock, oil shock, Post-Keynesian economics, price stability, profit maximization, proprietary trading, regulatory arbitrage, reserve currency, Rubik’s Cube, Snapchat, Suez crisis 1956, the market place, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, work culture , Y2K

However, the key driver of the Eurodollar market was financial regulation – or, more specifically, the banks’ determination to avoid it. Money markets were heavily regulated at the time, particularly in the US, making a strong case for setting up a US dollar money market outside the jurisdiction and scrutiny of the Federal Reserve and other US authorities.8 This also coincided with the end of the foreign exchange controls that had existed in Western Europe. With the Eurocurrency market, a free, competitive and global money market was beginning to take shape for the first time. A platform for engaging in regulatory arbitrage was formed, and European banks jumped at the opportunity to exploit loopholes in different jurisdictions.

Why It's Still Kicking Off Everywhere: The New Global Revolutions by Paul Mason

anti-globalists, back-to-the-land, balance sheet recession, bank run, banking crisis, Berlin Wall, business cycle, capital controls, capitalist realism, centre right, Chekhov's gun, citizen journalism, collapse of Lehman Brothers, collective bargaining, creative destruction, credit crunch, Credit Default Swap, currency manipulation / currency intervention, currency peg, disinformation, do-ocracy, eurozone crisis, Fall of the Berlin Wall, floating exchange rates, foreign exchange controls, Francis Fukuyama: the end of history, full employment, ghettoisation, illegal immigration, informal economy, land tenure, Leo Hollis, low skilled workers, mass immigration, means of production, megacity, Mohammed Bouazizi, Naomi Klein, Network effects, New Journalism, Occupy movement, price stability, quantitative easing, race to the bottom, rising living standards, short selling, Slavoj Žižek, Stewart Brand, strikebreaker, union organizing, We are the 99%, Whole Earth Catalog, WikiLeaks, Winter of Discontent, women in the workforce, working poor, working-age population, young professional

Probably the only thing they could agree on with the Tea Party was that. But trade wars, whether driven by left, right or centre, have a negative logic that can escape the intentions of the participants. As Charles Kindleberger’s masterly account of the Depression showed, ‘by advancing its own economic good by a tariff, currency depreciation or foreign exchange control, a country may worsen the welfare of its partners by more than its own gain … so that each country ends up in a worse position’.24 Kindleberger concluded that only a hegemonic power could hold things together in this situation; a country prepared to absorb unwanted produce, accept IOUs from everybody and maintain the flow of investment capital as it dried up elsewhere.

The City by Tony Norfield

accounting loophole / creative accounting, air traffic controllers' union, anti-communist, Asian financial crisis, asset-backed security, bank run, banks create money, Basel III, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, BRICs, British Empire, capital controls, central bank independence, colonial exploitation, colonial rule, continuation of politics by other means, currency risk, dark matter, Edward Snowden, Fall of the Berlin Wall, financial innovation, financial intermediation, foreign exchange controls, Francis Fukuyama: the end of history, G4S, global value chain, Goldman Sachs: Vampire Squid, interest rate derivative, interest rate swap, Irish property bubble, Leo Hollis, linked data, London Interbank Offered Rate, London Whale, Londongrad, low interest rates, Mark Zuckerberg, Martin Wolf, means of production, Money creation, money market fund, mortgage debt, North Sea oil, Northern Rock, Occupy movement, offshore financial centre, plutocrats, purchasing power parity, quantitative easing, Real Time Gross Settlement, regulatory arbitrage, reserve currency, Ronald Reagan, seigniorage, Sharpe ratio, sovereign wealth fund, Suez crisis 1956, The Great Moderation, transaction costs, transfer pricing, zero-sum game

For example, the value of outstanding international bank loans rose by two-thirds between 1977 and 1979 to exceed $1,000bn, and it was in the 1970s that major US exchanges began trading in financial futures contracts on US government bonds and currencies.22 By 1979, the euromarkets had also already passed their teenage years. Nevertheless, 1979 is a useful starting point for discussing two significant policies affecting the UK financial markets: the abolition of foreign exchange controls and the ‘Big Bang’ reform of the London Stock Exchange. One of the first moves of the incoming UK Conservative government in 1979 was to abolish the existing controls on foreign exchange markets. It was able to do so with little risk of a collapse of sterling’s exchange value because the UK’s North Sea oil production and net exports had begun to increase sharply.

The Great Race: The Global Quest for the Car of the Future by Levi Tillemann

Affordable Care Act / Obamacare, An Inconvenient Truth, Any sufficiently advanced technology is indistinguishable from magic, autonomous vehicles, banking crisis, Bear Stearns, car-free, carbon footprint, clean tech, creative destruction, decarbonisation, deindustrialization, demand response, Deng Xiaoping, Donald Trump, driverless car, electricity market, Elon Musk, en.wikipedia.org, energy security, factory automation, Fairchild Semiconductor, Ford Model T, foreign exchange controls, gigafactory, global value chain, high-speed rail, hydrogen economy, index card, Intergovernmental Panel on Climate Change (IPCC), joint-stock company, Joseph Schumpeter, Kanban, Kickstarter, manufacturing employment, market design, megacity, Nixon shock, obamacare, off-the-grid, oil shock, planned obsolescence, Ralph Nader, RFID, rolodex, Ronald Reagan, Rubik’s Cube, self-driving car, shareholder value, Shenzhen special economic zone , short squeeze, Silicon Valley, Silicon Valley startup, skunkworks, smart cities, Solyndra, sovereign wealth fund, special economic zone, Steve Jobs, Tesla Model S, too big to fail, Unsafe at Any Speed, zero-sum game, Zipcar

When MITI regained control over the auto sector it quickly instituted “the virtual equivalent of an import ban.”36 Severe tariffs were levied on foreign imports in 1951, and the heaviest taxes focused on larger vehicles—most of which happened to be American. This pushed Japanese consumers toward smaller cars, as did a series of foreign exchange controls that dictated what technologies Japan’s companies could import.37 The clear aim was to protect the Japanese auto market from American imports. Go West At the same time as MITI was busy kicking out American automakers from its domestic market, it was also eyeing U.S. markets—with a particular focus on California.38 Japan wanted to export, but to do this, Japanese manufacturers would need to meet global standards.

Tower of Basel: The Shadowy History of the Secret Bank That Runs the World by Adam Lebor

Alan Greenspan, banking crisis, Basel III, Bear Stearns, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business climate, central bank independence, corporate governance, corporate social responsibility, deindustrialization, eurozone crisis, fiat currency, financial independence, financial innovation, foreign exchange controls, forensic accounting, Glass-Steagall Act, Goldman Sachs: Vampire Squid, haute cuisine, IBM and the Holocaust, Kickstarter, low interest rates, Occupy movement, offshore financial centre, Ponzi scheme, power law, price stability, quantitative easing, reserve currency, special drawing rights

Bilateral payments must be transformed into multilateral economic transactions and clearing arrangements, “so that the various countries may enter into properly regulated economic relations with one another through the intermediary of clearing arrangements of this kind”—just as happened with the 1947 Paris agreement on multilateral payments and its successor mechanisms, such as the European Payments Union (EPU). Foreign exchange controls could not be abolished in one move or monetary union quickly introduced. The process must be incremental, Funk argued, anticipating the need for a halfway system like the EPU, which liberated non-residents from exchange controls, although they remained in place for citizens. “The problem is not one of free exchange or European monetary union, but in the first place, of a further development of clearing techniques for the purpose of ensuring a smooth course for payments within the countries participating in the clearing.”

How the City Really Works: The Definitive Guide to Money and Investing in London's Square Mile by Alexander Davidson

accounting loophole / creative accounting, algorithmic trading, asset allocation, asset-backed security, bank run, banking crisis, barriers to entry, Bear Stearns, Big bang: deregulation of the City of London, buy and hold, capital asset pricing model, central bank independence, corporate governance, Credit Default Swap, currency risk, dematerialisation, discounted cash flows, diversified portfolio, double entry bookkeeping, Edward Lloyd's coffeehouse, Elliott wave, equity risk premium, Exxon Valdez, foreign exchange controls, forensic accounting, Glass-Steagall Act, global reserve currency, high net worth, index fund, inflation targeting, information security, intangible asset, interest rate derivative, interest rate swap, inverted yield curve, John Meriwether, junk bonds, London Interbank Offered Rate, Long Term Capital Management, low interest rates, margin call, market fundamentalism, Nick Leeson, North Sea oil, Northern Rock, pension reform, Piper Alpha, price stability, proprietary trading, purchasing power parity, Real Time Gross Settlement, reserve currency, Right to Buy, risk free rate, shareholder value, short selling, The Wealth of Nations by Adam Smith, transaction costs, value at risk, yield curve, zero-coupon bond

By 1900, London had become the world’s largest banking centre with about 250 private and joint stock banks. During the First World War, the banking business expanded in size and scope. Banks, however, were subsequently hit by poor interwar trading conditions. During the Second World War, banks became subject to foreign exchange controls and lending priorities. In the 1950s, these were relaxed and banks expanded. In the 1970s, the government encouraged more active competition. From a comparatively few conglomerates, banks moved towards the broad provision of financial services that we have today. We have come a long way from the Victorian era when many small banks had provided limited facilities for a wealthy minority.

The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics by William R. Easterly

Andrei Shleifer, business climate, business cycle, Carmen Reinhart, central bank independence, clean water, colonial rule, correlation does not imply causation, creative destruction, endogenous growth, financial repression, foreign exchange controls, Gini coefficient, government statistician, Gunnar Myrdal, income inequality, income per capita, inflation targeting, interchangeable parts, inventory management, invisible hand, Isaac Newton, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, large denomination, low interest rates, manufacturing employment, Money creation, Network effects, New Urbanism, open economy, PalmPilot, Productivity paradox, purchasing power parity, rent-seeking, Robert Solow, Ronald Reagan, selection bias, Silicon Valley, Simon Kuznets, The Wealth of Nations by Adam Smith, Thomas Malthus, total factor productivity, trade liberalization, Tragedy of the Commons, urban sprawl, Watson beat the top human players on Jeopardy!, Yogi Berra, Yom Kippur War

Daewoo explained to Desh how to use the system and advised the Bangladeshi government how to administer the scheme efficiently. Daewoo and Desh also explained to local Bangladeshi banks how to open back-to-back import letters of credit. They figured out how to get the government to go along with such back-to-back import letters of credit under the government’s strict foreign exchange controls. A financing firm called Empire Capital GroupInc. from California gives the following simple explanation of back-to-back import letters of credit: We can arrange back-to-back letters of credit when the intermediary desires the producer and thebuyer be kept apart for competitive reasons and at the same time insuring payment to the respective parties.

What's Next?: Unconventional Wisdom on the Future of the World Economy by David Hale, Lyric Hughes Hale

"World Economic Forum" Davos, affirmative action, Alan Greenspan, Asian financial crisis, asset-backed security, bank run, banking crisis, Basel III, Bear Stearns, behavioural economics, Berlin Wall, biodiversity loss, Black Swan, Bretton Woods, business cycle, capital controls, carbon credits, carbon tax, Cass Sunstein, central bank independence, classic study, cognitive bias, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, corporate social responsibility, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, currency risk, Daniel Kahneman / Amos Tversky, debt deflation, declining real wages, deindustrialization, diversification, energy security, Erik Brynjolfsson, Fall of the Berlin Wall, financial engineering, financial innovation, floating exchange rates, foreign exchange controls, full employment, Gini coefficient, Glass-Steagall Act, global macro, global reserve currency, global village, high net worth, high-speed rail, Home mortgage interest deduction, housing crisis, index fund, inflation targeting, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), inverted yield curve, invisible hand, Just-in-time delivery, Kenneth Rogoff, Long Term Capital Management, low interest rates, Mahatma Gandhi, Martin Wolf, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, military-industrial complex, Money creation, money market fund, money: store of value / unit of account / medium of exchange, mortgage tax deduction, Network effects, new economy, Nicholas Carr, oil shale / tar sands, oil shock, open economy, passive investing, payday loans, peak oil, Ponzi scheme, post-oil, precautionary principle, price stability, private sector deleveraging, proprietary trading, purchasing power parity, quantitative easing, race to the bottom, regulatory arbitrage, rent-seeking, reserve currency, Richard Thaler, risk/return, Robert Shiller, Ronald Reagan, Savings and loan crisis, sovereign wealth fund, special drawing rights, subprime mortgage crisis, technology bubble, The Great Moderation, Thomas Kuhn: the structure of scientific revolutions, Tobin tax, too big to fail, total factor productivity, trade liberalization, Tragedy of the Commons, Washington Consensus, Westphalian system, WikiLeaks, women in the workforce, yield curve

In terms of its government debt market, China’s government and central bank bond market combined is still relatively small, with approximately $1.4 trillion outstanding in 2008, of which about half (mainly the central bank’s sterilization issuance) was short term. Fiscal policy has generally been conservative, and the debt-to-GDP ratio is low, but the Chinese capital markets, including those for government securities, are still underdeveloped. Liquidity among domestic holders is limited as most purchasers hold until maturity. Foreign exchange controls mean that, other than for tourists’ needs, the RMB is only available on a very limited basis to nonresidents. Access to domestic, onshore RMB equity and debt markets by foreigners or by foreign entities is subject to qualified foreign institutional investors quotas, while onshore RMB deposit accounts at banks are simply not available to nonresidents.

Free to Choose: A Personal Statement by Milton Friedman, Rose D. Friedman

affirmative action, agricultural Revolution, air freight, back-to-the-land, bank run, banking crisis, business cycle, Corn Laws, foreign exchange controls, Fractional reserve banking, full employment, German hyperinflation, invisible hand, means of production, minimum wage unemployment, oil shale / tar sands, oil shock, price stability, Ralph Nader, RAND corporation, rent control, road to serfdom, Sam Peltzman, school vouchers, Simon Kuznets, The Wealth of Nations by Adam Smith, union organizing, Unsafe at Any Speed, Upton Sinclair, urban renewal, War on Poverty, working poor, Works Progress Administration

Some areas of production are reserved to government; in others private firms are permitted to operate, but only in conformity with The Plan. Tariffs and quotas control imports, subsidies control exports. Self-sufficiency is the ideal. Needless to say, these measures produce shortages of foreign exchange. These are met by detailed and extensive foreign exchange control—a major source both of inefficiency and of special privilege. Wages and prices are controlled. A government permit is required to build a factory or to make any other investment. Taxes are ubiquitous, highly graduated on paper, evaded in practice. Smuggling, black markets, illegal transactions of all kinds are every bit as ubiquitous as taxes, undermining all respect for law, yet performing a valuable social service by offsetting to some extent the rigidity of central planning and making it possible for urgent needs to be satisfied.

Arrival City by Doug Saunders

agricultural Revolution, Ayatollah Khomeini, Berlin Wall, Boeing 747, Branko Milanovic, call centre, credit crunch, Deng Xiaoping, desegregation, foreign exchange controls, gentrification, ghettoisation, Gini coefficient, guest worker program, Hernando de Soto, Honoré de Balzac, illegal immigration, immigration reform, income inequality, informal economy, Jane Jacobs, Kibera, land reform, land tenure, low skilled workers, mass immigration, megacity, microcredit, new economy, Pearl River Delta, pensions crisis, place-making, price mechanism, rent control, Silicon Valley, special economic zone, the built environment, The Chicago School, The Death and Life of Great American Cities, upwardly mobile, urban planning, urban sprawl, white flight, working poor, working-age population

Most tellingly, social inequality actually increased during the years of the revolution, according to the regime’s own estimates.‡ It has been described as a process of “hollow growth”: Even though the oil-dominated economy grew by 9 percent each year in Chávez’s first decade, it failed to create jobs, and half of Venezuela’s factories closed their doors between 1998 and 2008, mainly because price and foreign-exchange controls made it impossible to do business. That view was reinforced by Edmond Saade, a generally regime-supporting scholar who runs the Caracas-based Datos research firm. He realized, a few years into the regime, that the money spilling into the arrival cities of Caracas was leaving no lasting effect.

It's Our Turn to Eat by Michela Wrong

"World Economic Forum" Davos, Berlin Wall, Bob Geldof, Bretton Woods, British Empire, clean water, colonial rule, disinformation, Doha Development Round, Easter island, failed state, Fall of the Berlin Wall, financial independence, foreign exchange controls, Kibera, Mahatma Gandhi, Mikhail Gorbachev, Nelson Mandela, oil shock, oil-for-food scandal, out of africa, profit motive, Ronald Reagan, structural adjustment programs, upwardly mobile, young professional, zero-sum game, éminence grise

A 1970–71 parliamentary commission helpfully authorised government employees to run their own businesses while holding down civil service jobs (‘straddling’, as it was called), a ruling its chairman later justified on the grounds that there was no point banning an activity that would persist whatever the law decreed.13 A post in a state-run utility or corporation, which could hike prices ever upwards thanks to its monopoly position, offered untold profit-taking opportunities. Similarly, who was better placed to benefit from foreign exchange controls which created a yawning gap between black market and official rates than an insider with excellent banking and Treasury contacts? The structural adjustment programmes pushed on Africa by the World Bank and the International Monetary Fund in the 1980s, which loosened the Kenyan government's stranglehold by making aid conditional on privatising bloated parastatals, dropping currency controls and opening markets to international trade, complicated things, but the ‘eaters’ quickly vaulted that hurdle.

On the Grand Trunk Road: A Journey Into South Asia by Steve Coll

affirmative action, airport security, anti-communist, Ayatollah Khomeini, back-to-the-land, Berlin Wall, British Empire, colonial rule, disinformation, Fall of the Berlin Wall, foreign exchange controls, full employment, global village, income inequality, income per capita, Indoor air pollution, Khyber Pass, land reform, Mahatma Gandhi, market bubble, mass immigration, Mikhail Gorbachev, New Urbanism, Ponzi scheme, Ronald Reagan, upwardly mobile, urban sprawl, yellow journalism

The family industries Sharif built were constructed during a period of oppression and corruption. In person, he comes off as a bit befuddled. Despite these and other limitations, as well as the chronic maladies of Pakistan’s divided polity, the economy has kicked out briskly under Sharif’s spur. The prime minister abolished foreign exchange controls and many customs restrictions and he proudly declared that Pakistan should now be considered one giant airport green channel. The country’s well-developed class of heroin smugglers and gunrunners, among others, are responding vigorously. “Our policy today is whoever wants to invest in Pakistan, whether Pakistani or foreigner, doesn’t have to seek permission from the government.

The Bank That Lived a Little: Barclays in the Age of the Very Free Market by Philip Augar

"Friedman doctrine" OR "shareholder theory", activist fund / activist shareholder / activist investor, Alan Greenspan, Asian financial crisis, asset-backed security, bank run, banking crisis, Bear Stearns, Big bang: deregulation of the City of London, Black Monday: stock market crash in 1987, Bonfire of the Vanities, bonus culture, book value, break the buck, business logic, call centre, collateralized debt obligation, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, family office, financial deregulation, financial innovation, fixed income, foreign exchange controls, Glass-Steagall Act, high net worth, hiring and firing, index card, index fund, interest rate derivative, light touch regulation, loadsamoney, Long Term Capital Management, long term incentive plan, low interest rates, Martin Wolf, money market fund, moral hazard, Nick Leeson, Northern Rock, offshore financial centre, old-boy network, out of africa, prediction markets, proprietary trading, quantitative easing, risk free rate, Ronald Reagan, shareholder value, short selling, Sloane Ranger, Social Responsibility of Business Is to Increase Its Profits, sovereign wealth fund, too big to fail, vertical integration, wikimedia commons, yield curve

As he navigated the corridors connecting Barclays Merchant Bank offices in Gracechurch Street with Barclays’ imposing head office at 54 Lombard Street, he was wary. Bevan currently had a lot of problems to deal with. When he had taken over from Tuke – who remained on the board as a non-executive director – another wave of banking deregulation was already underway. It had begun immediately after the general election in 1979. The abolition of foreign exchange controls under the new prime minister, Margaret Thatcher, and chancellor of the exchequer, Geoffrey Howe, allowed British institutions to invest more easily overseas and made London a more attractive place for foreign banks, but that meant more competition for Barclays. The emergency corset restraint on bank lending imposed in 1973 was ended in 1980 and the year after that, in Bevan’s first year, the Bank of England further eased controls on banks’ balance sheets.

The Cleaner: The True Story of One of the World’s Most Successful Money Launderers by Bruce Aitken

"RICO laws" OR "Racketeer Influenced and Corrupt Organizations", air freight, airport security, Asian financial crisis, Boeing 747, Bonfire of the Vanities, foreign exchange controls, junk bonds, Maui Hawaii, Michael Milken, offshore financial centre, profit motive, risk/return, South China Sea

The receptionist noticed me immediately, and a feeling of intense suspense permeated the lobby right before I was whisked back toward the vault. As we walked, I could hear whispering: “Deak & Company has arrived. They have another deposit of repatriated Aussie dollars collected from Aussie tourists and travelers.” Yet another illusion created to avoid a world of draconian foreign exchange controls. Right away there is small talk, suspicions at times, about the flight, what time I arrived, whether or not I had encountered any problems with the customs. All of this, of course, was a cunning ruse, a clever ploy, so I quickly changed the subject to rugby, and asked where everyone would like to go to lunch and have a few beers.

The End of Alchemy: Money, Banking and the Future of the Global Economy by Mervyn King

Alan Greenspan, Andrei Shleifer, Asian financial crisis, asset-backed security, balance sheet recession, bank run, banking crisis, banks create money, behavioural economics, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Monday: stock market crash in 1987, Black Swan, Boeing 747, Bretton Woods, British Empire, business cycle, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, centre right, classic study, collapse of Lehman Brothers, creative destruction, Credit Default Swap, crowdsourcing, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, distributed generation, Doha Development Round, Edmond Halley, Fall of the Berlin Wall, falling living standards, fiat currency, financial engineering, financial innovation, financial intermediation, floating exchange rates, foreign exchange controls, forward guidance, Fractional reserve banking, Francis Fukuyama: the end of history, full employment, German hyperinflation, Glass-Steagall Act, Great Leap Forward, Hyman Minsky, inflation targeting, invisible hand, Japanese asset price bubble, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Meriwether, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, labour market flexibility, large denomination, lateral thinking, liquidity trap, Long Term Capital Management, low interest rates, manufacturing employment, market clearing, Martin Wolf, Mexican peso crisis / tequila crisis, Money creation, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, Nick Leeson, no-fly zone, North Sea oil, Northern Rock, oil shale / tar sands, oil shock, open economy, paradox of thrift, Paul Samuelson, Ponzi scheme, price mechanism, price stability, proprietary trading, purchasing power parity, quantitative easing, rent-seeking, reserve currency, Richard Thaler, rising living standards, Robert Shiller, Robert Solow, Satoshi Nakamoto, savings glut, secular stagnation, seigniorage, stem cell, Steve Jobs, The Great Moderation, the payments system, The Rise and Fall of American Growth, Thomas Malthus, too big to fail, transaction costs, Tyler Cowen: Great Stagnation, yield curve, Yom Kippur War, zero-sum game

And as declared in Magna Carta eight hundred years ago, ‘There shall be but one Measure throughout the Realm.’42 It may be that we could allow anyone to issue their own money, as advocated by the economist and Nobel Laureate Friedrich Hayek, trusting in competition to ensure that we would all decide to use the money of the ‘best’ issuer (the supplier most trusted not to abuse their ability to print money).43 But competitive monies have arisen rarely, and usually only in situations where government money is either absent (as, for example, in the use of cigarettes as currency in prisoner-of-war camps) or badly managed (as in periods of hyperinflation). Despite the abolition of foreign exchange controls, competition among national currencies has not reduced the dominance, within each economy, of a single public currency. There are exceptions, but they are few and far between. The abandonment of their own currency by Panama and Ecuador, and their adoption of the dollar (see Chapter 7), is one example.

Super Continent: The Logic of Eurasian Integration by Kent E. Calder

"World Economic Forum" Davos, 3D printing, air freight, Asian financial crisis, Bear Stearns, Berlin Wall, blockchain, Bretton Woods, business intelligence, capital controls, Capital in the Twenty-First Century by Thomas Piketty, classic study, cloud computing, colonial rule, Credit Default Swap, cuban missile crisis, deindustrialization, demographic transition, Deng Xiaoping, disruptive innovation, Doha Development Round, Donald Trump, energy transition, European colonialism, export processing zone, failed state, Fall of the Berlin Wall, foreign exchange controls, geopolitical risk, Gini coefficient, high-speed rail, housing crisis, income inequality, industrial cluster, industrial robot, interest rate swap, intermodal, Internet of things, invention of movable type, inventory management, John Markoff, liberal world order, Malacca Straits, Mikhail Gorbachev, mittelstand, money market fund, moral hazard, new economy, oil shale / tar sands, oil shock, purchasing power parity, quantitative easing, reserve currency, Ronald Reagan, seigniorage, Shenzhen special economic zone , smart cities, smart grid, SoftBank, South China Sea, sovereign wealth fund, special drawing rights, special economic zone, Suez canal 1869, Suez crisis 1956, supply-chain management, Thomas L Friedman, trade liberalization, trade route, transcontinental railway, UNCLOS, UNCLOS, union organizing, Washington Consensus, working-age population, zero-sum game

China’s recent macroeconomic growth, like Japan’s high-speed expansion of the 1950s, 1960s, and early 1970s, has been leveraged by a mountain of debt, secured mainly by real estate. The structural disequilibria in the Chinese political economy have, like those of Japan before 1980, been insulated from global pressures by foreign exchange controls, preventing the outflow of capital. The uncertain consequences for the Chinese domestic political economy if exchange controls were substantially liberalized are an imponderable that must be haunting Beijing. In Japan, financial liberalization led, after an interval of powerful countervailing stimulus during the 1980s, to an economic dislocation from which that country has still not fully recovered, nearly three decades later.

East West Street: On the Origins of "Genocide" and "Crimes Against Humanity" by Philippe Sands

Albert Einstein, anti-communist, battle of ideas, British Empire, card file, foreign exchange controls, nuremberg principles

Simon Dubnow’s pessimism proved well-founded: he was murdered close to his home two years after Lemkin left Riga. Weeks of waiting in Stockholm turned into months. Karl Schlyter suggested he might lecture at the university, so he took an intensive course in Swedish. By September 1940, he was proficient enough to lecture in Swedish on foreign exchange controls and to write a book on the subject, also in the newly learned language. Letters arrived from Bella and Josef, offering rare moments of happiness, tinged with anxiety about their well-being under the Soviets. Restless and driven, incapable of indolence, Lemkin sought a bigger project. A map of Europe offered an idea as “the blood red cloth with the black spider on a white field” extended its reach across the Continent.

Money Free and Unfree by George A. Selgin

Alan Greenspan, asset-backed security, bank run, banking crisis, barriers to entry, Bear Stearns, break the buck, Bretton Woods, business cycle, capital controls, central bank independence, centralized clearinghouse, Charles Lindbergh, credit crunch, Credit Default Swap, crony capitalism, disintermediation, Dutch auction, fear of failure, fiat currency, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, financial repression, foreign exchange controls, Fractional reserve banking, German hyperinflation, Glass-Steagall Act, Hyman Minsky, incomplete markets, inflation targeting, information asymmetry, invisible hand, Isaac Newton, Joseph Schumpeter, large denomination, liquidity trap, Long Term Capital Management, low interest rates, market microstructure, Money creation, money market fund, moral hazard, Network effects, Northern Rock, oil shock, Paul Samuelson, Phillips curve, plutocrats, price stability, profit maximization, purchasing power parity, quantitative easing, random walk, rent-seeking, reserve currency, Robert Gordon, Robert Solow, Savings and loan crisis, savings glut, seigniorage, special drawing rights, The Great Moderation, the payments system, too big to fail, transaction costs, Tyler Cowen, unorthodox policies, vertical integration, Y2K

We go further in arguing that fiscal forces have typically shaped the industrial organization of money production, throughout history and across countries, and account for its major institutional features even in advanced democracies today. Such observed legal restrictions as statutory reserve requirements, interest rate ceilings, foreign exchange controls, and monopoly issue of currency impede efficiency but raise revenue. A RATIONAL DICTATOR MODEL To develop our hypothesis, we adopt a method found in the writings of the Italian fiscal theorists, especially Amilcare Puviani. According to James Buchanan (1960: 64), Puviani tried to account for overall government tax arrangements by asking “two simple questions.”

The World for Sale: Money, Power and the Traders Who Barter the Earth’s Resources by Javier Blas, Jack Farchy

accounting loophole / creative accounting, airport security, algorithmic trading, Asian financial crisis, Ayatollah Khomeini, banking crisis, book value, BRICs, business climate, business cycle, collapse of Lehman Brothers, commodity super cycle, coronavirus, corporate raider, COVID-19, Deng Xiaoping, Donald Trump, electricity market, energy security, European colonialism, failed state, financial innovation, Ford Model T, foreign exchange controls, Great Grain Robbery, invisible hand, John Deuss, junk bonds, Kickstarter, light touch regulation, lockdown, low interest rates, margin call, new economy, North Sea oil, offshore financial centre, oil shale / tar sands, oil shock, oil-for-food scandal, Oscar Wyatt, price anchoring, proprietary trading, purchasing power parity, Ronald Reagan, Scramble for Africa, sovereign wealth fund, special economic zone, stakhanovite, Suez crisis 1956, trade route, vertical integration, WikiLeaks, Yom Kippur War, éminence grise

Instead, they expanded into merchant banking and private equity, one day lending money to the government of Nigeria, the next investing in Peruvian anchovy factories. The commodity traders were, effectively, engaging in capital arbitrage: raising funds in the industrialised world, and investing them in emerging markets, where they enjoyed fatter returns. It was a risky world, however, besieged by political crisis, encumbered by foreign exchange controls, and handicapped by red tape. But if they got the timing right, the traders could hit the jackpot. In Brazil and Argentina, for example, investments paid for themselves in as little as two or three years, compared with ten years or longer in developed nations. 38 The trading houses were confident they would get paid: without them, countries couldn’t export their goods and earn precious hard currencies.

India's Long Road by Vijay Joshi

Affordable Care Act / Obamacare, barriers to entry, Basel III, basic income, blue-collar work, book value, Bretton Woods, business climate, capital controls, carbon tax, central bank independence, clean water, collapse of Lehman Brothers, collective bargaining, colonial rule, congestion charging, Cornelius Vanderbilt, corporate governance, creative destruction, crony capitalism, decarbonisation, deindustrialization, demographic dividend, demographic transition, Doha Development Round, eurozone crisis, facts on the ground, failed state, financial intermediation, financial repression, first-past-the-post, floating exchange rates, foreign exchange controls, full employment, germ theory of disease, Gini coefficient, global supply chain, global value chain, hiring and firing, income inequality, Indoor air pollution, Induced demand, inflation targeting, invisible hand, land reform, low interest rates, Mahatma Gandhi, manufacturing employment, Martin Wolf, means of production, microcredit, moral hazard, obamacare, Pareto efficiency, price elasticity of demand, price mechanism, price stability, principal–agent problem, profit maximization, profit motive, purchasing power parity, quantitative easing, race to the bottom, randomized controlled trial, rent-seeking, reserve currency, rising living standards, school choice, school vouchers, secular stagnation, Silicon Valley, smart cities, South China Sea, special drawing rights, The Future of Employment, The Market for Lemons, too big to fail, total factor productivity, trade liberalization, Tragedy of the Commons, transaction costs, universal basic income, urban sprawl, vertical integration, working-age population

While this point has some merit, it is not inconsistent with the view that planning was excessively capital-​intensive and autarkic. 7. For an authoritative analysis of the control system, see Bhagwati and Desai (1970) and Bhagwati (1993). Note that price, investment, and distribution controls under Nehru did not reach the draconian severity that they were to attain under Indira Gandhi. Foreign exchange controls were a slightly different story. They were quite relaxed until the mid-​1950s but became increasingly tight after the foreign exchange crisis of 1957. By 1964, they constituted a serious impediment to production, part of the ‘quiet crisis’ that led to the World Bank sending the Bell Mission to report on the state of the Indian economy.

War and Gold: A Five-Hundred-Year History of Empires, Adventures, and Debt by Kwasi Kwarteng

accounting loophole / creative accounting, Alan Greenspan, anti-communist, Asian financial crisis, asset-backed security, Atahualpa, balance sheet recession, bank run, banking crisis, Bear Stearns, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business cycle, California gold rush, capital controls, Carmen Reinhart, central bank independence, centre right, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, currency manipulation / currency intervention, Deng Xiaoping, discovery of the americas, Etonian, eurozone crisis, fiat currency, financial engineering, financial innovation, fixed income, floating exchange rates, foreign exchange controls, Francisco Pizarro, full employment, German hyperinflation, Glass-Steagall Act, guns versus butter model, hiring and firing, income inequality, invisible hand, Isaac Newton, it's over 9,000, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, Kenneth Rogoff, labour market flexibility, land bank, liberal capitalism, low interest rates, market bubble, money: store of value / unit of account / medium of exchange, moral hazard, new economy, Nixon triggered the end of the Bretton Woods system, oil shock, plutocrats, Ponzi scheme, price mechanism, quantitative easing, rolodex, Ronald Reagan, South Sea Bubble, subprime mortgage crisis, Suez canal 1869, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, the market place, The Wealth of Nations by Adam Smith, too big to fail, War on Poverty, Yom Kippur War

., 168–70, 193, 202, 204, 207, 252, 259, 306, 308, 311, 339 Ekali swimming pools, 335–6 El Dorado, 13 Elizabeth II, Queen, 270 Ellerman, John, 87–8 ‘emerging markets’, 289 Emminger, Otmar, 187, 254–6 English, Phil, 297 Erhard, Ludwig, 182 ERM (exchange rate mechanism), 263–72, 276, 280 euro conditions for joining, 272–3, 277, 336 Greece joins, 280–1, 335–7 introduction of, 272–81, 334–5 and moral hazard, 274 risk of collapse, 346–7 European Central Bank, 272, 346 European Commission, 346 European Economic Community (EEC), 211, 226, 262, 276 European Financial Stabilization Facility (EFSF), 338 European Union, 267, 276, 337, 352 Evening Standard, 118 excess profits duty, 104–5 Export-Import Bank of Japan, 195 Export-Import Bank of Washington, 154, 164 Fairchild, Fred, 103 Faisal, King, 229–30 Federal Reserve Accord of 1951, 164–5, 169 under Bernanke, 327, 343 under Burns, 215, 233 establishment of, 108 Federal Open Market Committee (FOMC), 163–4 and Great Depression, 126–8 under Greenspan, 258–60, 301–4, 310, 313–14, 325 and market stabilization, 259–60 under Martin, 205–6, 215 Meltzer’s history of, 212–13 relationship with Treasury, 163–7, 169 Strong and New York branch, 123 under Volcker, 223, 237–8, 249–50 Feis, Herbert, 83 Ferguson, Niall, 6, 90, 318–19, 351 fiat money, 5, 61, 320 Field, Marshall, 75 ‘Financial Revolution’, 24 Financial Times, 227, 265, 271–2, 326, 347 Finland, 278 First Bank of the United States, 67 First World War, outbreak of, 90–3 fiscal policy, primacy of, 2–3 ‘fiscal repression’, 357–8 Fish, Hamilton, 157 Fisher, Irving, 121–2 Fisk, James, Jr (‘Big Jim’), 76 Fleming, Ian, 4 floating currencies, 226, 231, 234–5, 262, 299 florins, 11 Forbes, Steven, 299 Ford Motor Company, 121 Ford, Gerald, 232, 235, 308 foreign exchange controls, abolition of, 242–3 Forster, E. M., 98 Fort Knox, 4, 213, 219 France challenge to dollar primacy, 209–11 continuation of gold standard, 129–31 credit system, 99–100 Deng Xiaoping visit, 283 departure from gold standard, 132 First World War finance, 99–100 gold reserves, 85, 100, 227 Napoleonic, 48 national debt, 342, 352 overseas investments, 101 and single currency, 275–6 see also French Revolution Francis, King, 11 Franco-Prussian War, 101 Frankfurt Gazette, 101 Frankfurt Stock Exchange, 101 Franz Ferdinand, Archduke, 90–1 French Revolution, 3, 5–6, 43–50, 54, 109, 135, 192 Friedensburg, Ferdinand, 185 Friedman, Milton, 21, 126–30, 233–5, 241–2, 247, 249, 303–4 Fry, Roger, 82 Fuggers bank, 19–20 Fuld, Richard, 329 full employment, 143, 159–60, 235 Furnese, Sir Henry, 25–7 Gaddafi, Colonel Muammar, 225 Gaitskell, Hugh, 155–6 Galbraith, John Kenneth, 7, 125 Galsworthy, John, 81, 105 Geithner, Tim, 343 General Agreement on Tariffs and Trade (GATT), 200 General Motors, 117, 153–4 Genoese bankers, 19–20 George I, King, 35 Germany currency reform, 183–8, 193 dependence on American capital, 119–24, 126 elimination of unemployment, 149 First World War finance, 99–103 gold reserves, 227 and Greek debt crisis, 338, 347–8 hyperinflation, 4, 120 inflation, 101–2, 110 issue of paper money, 98, 100–1 national debt, 352, 355 Nazi Germany, 132–6, 149 overseas investments, 101 post-war, 181–8 rearmament, 134 reunification, 266, 268 and single currency, 274–8, 280, 334 tax policy, 102–3 unconditional surrender, 182 war economy, 135–6 war loans, 100–1 war reparations, 119, 123 Weimar Republic, 120–1 see also East Germany; West Germany Gettysburg Address, 66 Gilbert, Seymour Parker, 122–3 Gilmour, Ian, 243, 245–6 gilts, see government bonds Giscard d’Estaing, Valéry, 209 Gladstone, William, 7, 93, 148, 234 Gladwell, Malcolm, 74 Glass–Steagall Act, 195 Goebbels, Joseph, 132 gold break with dollar, 214, 218–20, 223, 225 Bretton Woods and dollar link, 140–4, 149–50, 167–70 as commodity, 76, 112–13 global stocks of, 358–9 revaluation of, 223, 225–7 rising price of, 226–7, 238, 320–1, 341 two-tier market in, 212, 227 value of, 53, 130–1, 140, 148, 158, 167, 209, 211–12, 219, 223, 320, 359 gold bloc, 131–2 gold payments, suspension of, 3–4 Gold Pool, 212, 227 gold standard, 2–4 abandonment of, 129–32 de Gaulle and return to, 210–11 establishment of, 52–3, 59–62, 64–5, 234 and European monetary union, 263, 273 return to, 109, 111–15, 118–19, 123, 142–3 suspension of, 92–3, 98 US adoption of, 77–8, 80 ‘Golden Rule’, de Gaulle’s, 211 Goldman Sachs, 164, 329–30 goldsmiths, 25, 357, 359 Goodman, Benny, 304 Goschen, George, 84–5 Gould, Jay, 75–6 government bonds (gilts), 55, 81–4, 90, 313 Greek, 347 and quantitative easing, 342–3 US, 71–3 government debt conversion of, 34, 84 investment in, 37–8, 73 and lessons of Greek crisis, 356 means of reduction, 357–8 government spending and collapse of Keynesian consensus, 241, 244 cuts under Thatcher and Reagan, 242, 244–6, 260–1 and democracy, 2–3, 93, 279 and financial crisis, 339–40, 352–3 monetarist critique of, 233–4 post-war cuts in, 179–80 Graham, Benjamin, 161 Great Contraction, 127 Great Depression, 4, 115, 123–30, 134, 177, 191, 193, 219, 240 Bernanke and, 343 and commodity prices, 127–30 Keynes’s view of, 128–9 monetarist explanation of, 126–9 see also Wall Street, crash of 1929 ‘Great Recession’, 228, 235 Great Society programme, 204–5, 212–13, 215, 234, 249, 323–4 Greece austerity, 343, 345, 348 debt crisis, 334–9, 345–8, 356 general election, 345–6 and single currency, 280–1, 335–7 tax evasion, 335–6 greenbacks, 71–2, 74, 76 Greenspan, Alan, 250, 258–9, 297, 343 and financial crisis, 301–4, 307–10, 312–14, 322, 326–7, 339–42, 352 Gregory, Judd, 309 Grenville, George, 39–40 Grey, Sir Edward, 107 Groener, General, 100 Guardian, 245, 351 Gulf states, 224–5, 231 Guterres, António, 277 Gutfreund, John, 339 Gutt, Camille, 150 Guy, Thomas, 36 Habsburg imperialism, 18–19 Haldeman, H.

Crisis and Leviathan: Critical Episodes in the Growth of American Government by Robert Higgs, Arthur A. Ekirch, Jr.

Alistair Cooke, American ideology, business cycle, clean water, collective bargaining, creative destruction, credit crunch, declining real wages, endowment effect, fiat currency, fixed income, foreign exchange controls, full employment, Glass-Steagall Act, guns versus butter model, hiring and firing, Ida Tarbell, income per capita, Jones Act, Joseph Schumpeter, laissez-faire capitalism, land bank, manufacturing employment, means of production, military-industrial complex, minimum wage unemployment, plutocrats, post-industrial society, power law, price discrimination, profit motive, rent control, rent-seeking, Richard Thaler, road to serfdom, Ronald Reagan, Sam Peltzman, Savings and loan crisis, Simon Kuznets, strikebreaker, The Wealth of Nations by Adam Smith, total factor productivity, transaction costs, transcontinental railway, union organizing, Upton Sinclair, War on Poverty, Works Progress Administration

Many of the institutional arrangements created during the Hundred Days merely reactivated programs and agencies employed during World War I. In his magnificent essay "The New Deal and the Analogue of War" William Leuchtenburg has documented in detail the indebtedness of the early New Deal to the wartime precedents. Such antecedents existed for the foreign exchange controls, the labor laws, the Tennessee Valley Authority, the Civilian Conservation Corps, the securities regulations, the government's housing programs, several of the credit agencies, and the transportation act as well as for the most critical and sweeping measures, the Agricultural Adjustment Act and the National Industrial Recovery Act.

How Asia Works by Joe Studwell

affirmative action, anti-communist, Asian financial crisis, bank run, banking crisis, barriers to entry, borderless world, Bretton Woods, British Empire, call centre, capital controls, central bank independence, collective bargaining, crony capitalism, cross-subsidies, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, demographic dividend, Deng Xiaoping, failed state, financial deregulation, financial repression, foreign exchange controls, Gini coefficient, glass ceiling, Great Leap Forward, high-speed rail, income inequality, income per capita, industrial robot, Joseph Schumpeter, Kenneth Arrow, land reform, land tenure, large denomination, liberal capitalism, low interest rates, market fragmentation, megaproject, non-tariff barriers, offshore financial centre, oil shock, open economy, passive investing, purchasing power parity, rent control, rent-seeking, Right to Buy, Ronald Coase, South China Sea, The Wealth of Nations by Adam Smith, TSMC, urban sprawl, Washington Consensus, working-age population

In a similar vein, the influential economist Albert Hirschman described successful economic development as a ‘multi-dimensional conspiracy’. 233. See William Megginson and Jeffry M. Netter, ‘From State to Market: A Survey of Empirical Studies on Privatisation’, Journal of Economic Literature 39 (2001), pp. 321–89. 234. The Japanese tariff increases date from 1961. In part they compensated for an easing of foreign exchange controls demanded by the IMF and the OECD, which Japan joined in 1964. Lockwood (ed.), State and Economic Enterprise in Japan, p. 491, describes the tariff increases as ‘a sweeping upward revision of tariffs … quietly begun’. The point about increased protection in the midst of the development process extends to other historical examples – Germany increased levels of protection from 1878 in a critical phase of her industrial development. 235.

Endless Money: The Moral Hazards of Socialism by William Baker, Addison Wiggin

Alan Greenspan, Andy Kessler, asset allocation, backtesting, bank run, banking crisis, Bear Stearns, Berlin Wall, Bernie Madoff, Black Swan, bond market vigilante , book value, Branko Milanovic, bread and circuses, break the buck, Bretton Woods, BRICs, business climate, business cycle, capital asset pricing model, carbon tax, commoditize, corporate governance, correlation does not imply causation, credit crunch, Credit Default Swap, crony capitalism, cuban missile crisis, currency manipulation / currency intervention, debt deflation, Elliott wave, en.wikipedia.org, Fall of the Berlin Wall, feminist movement, fiat currency, fixed income, floating exchange rates, foreign exchange controls, Fractional reserve banking, full employment, German hyperinflation, Great Leap Forward, housing crisis, income inequality, index fund, inflation targeting, Joseph Schumpeter, Kickstarter, laissez-faire capitalism, land bank, land reform, liquidity trap, Long Term Capital Management, lost cosmonauts, low interest rates, McMansion, mega-rich, military-industrial complex, Money creation, money market fund, moral hazard, mortgage tax deduction, naked short selling, negative equity, offshore financial centre, Ponzi scheme, price stability, proprietary trading, pushing on a string, quantitative easing, RAND corporation, rent control, rent stabilization, reserve currency, risk free rate, riskless arbitrage, Ronald Reagan, Savings and loan crisis, school vouchers, seigniorage, short selling, Silicon Valley, six sigma, statistical arbitrage, statistical model, Steve Jobs, stocks for the long run, Tax Reform Act of 1986, The Great Moderation, the scientific method, time value of money, too big to fail, Two Sigma, upwardly mobile, War on Poverty, Yogi Berra, young professional

Other wide-ranging works, such as Lewis’s Economic History 1919-1939, omit the country save for noting its leadership position in setting the highest tariffs in the world, both in 1913 (33%) and later in 1925 (44%), along with its joining a host of Third World nations in imposing import licenses and foreign exchange controls in the early 1930s.24 Its political situation began to be deeply troubled during the Depression years, as detailed by Stanley Payne: The tenor of the new government was revealed within less than a month, on May 11, 1931, when mobs led by anarchists (and some Radical Socialists) sacked monarchist headquarters in Madrid and then proceeded to set fire or otherwise wreck more than a dozen churches in the capital … Anarchists denounced the Republic as being worse than the monarchy.

The Shifts and the Shocks: What We've Learned--And Have Still to Learn--From the Financial Crisis by Martin Wolf

air freight, Alan Greenspan, anti-communist, Asian financial crisis, asset allocation, asset-backed security, balance sheet recession, bank run, banking crisis, banks create money, Basel III, Bear Stearns, Ben Bernanke: helicopter money, Berlin Wall, Black Swan, bonus culture, break the buck, Bretton Woods, business cycle, call centre, capital asset pricing model, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collateralized debt obligation, corporate governance, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, currency risk, debt deflation, deglobalization, Deng Xiaoping, diversification, double entry bookkeeping, en.wikipedia.org, Erik Brynjolfsson, Eugene Fama: efficient market hypothesis, eurozone crisis, Fall of the Berlin Wall, fiat currency, financial deregulation, financial innovation, financial repression, floating exchange rates, foreign exchange controls, forward guidance, Fractional reserve banking, full employment, Glass-Steagall Act, global rebalancing, global reserve currency, Growth in a Time of Debt, Hyman Minsky, income inequality, inflation targeting, information asymmetry, invisible hand, Joseph Schumpeter, Kenneth Rogoff, labour market flexibility, labour mobility, Les Trente Glorieuses, light touch regulation, liquidationism / Banker’s doctrine / the Treasury view, liquidity trap, Long Term Capital Management, low interest rates, mandatory minimum, margin call, market bubble, market clearing, market fragmentation, Martin Wolf, Mexican peso crisis / tequila crisis, Minsky moment, Modern Monetary Theory, Money creation, money market fund, moral hazard, mortgage debt, negative equity, new economy, North Sea oil, Northern Rock, open economy, paradox of thrift, Paul Samuelson, price stability, private sector deleveraging, proprietary trading, purchasing power parity, pushing on a string, quantitative easing, Real Time Gross Settlement, regulatory arbitrage, reserve currency, Richard Feynman, risk-adjusted returns, risk/return, road to serfdom, Robert Gordon, Robert Shiller, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, shareholder value, short selling, sovereign wealth fund, special drawing rights, subprime mortgage crisis, tail risk, The Chicago School, The Great Moderation, The Market for Lemons, the market place, The Myth of the Rational Market, the payments system, The Wealth of Nations by Adam Smith, too big to fail, Tyler Cowen, Tyler Cowen: Great Stagnation, vertical integration, very high income, winner-take-all economy, zero-sum game

Back in the 1970s, the high-income economies mostly still had extensive regulations on product markets and even employed direct controls on wages and prices, either permanently or temporarily. Marginal tax rates on high incomes were above 70 per cent in both the US and the UK.53 While the high-income countries had substantially liberalized trade in goods in the 1950s, 1960s and 1970s, trade in services was still highly restricted and most countries retained foreign-exchange controls. In developing economies, controls over markets were far more extensive. Many economies also had high levels of public ownership of industry. In India, the economy was constrained by what had come to be known as the ‘licence raj’. In the socialist economies of China, the Soviet Union and the Soviet empire in Central and Eastern Europe, comprehensive economic planning and public ownership remained in effect.

The Alchemists: Three Central Bankers and a World on Fire by Neil Irwin

"World Economic Forum" Davos, Alan Greenspan, Ayatollah Khomeini, bank run, banking crisis, Bear Stearns, Berlin Wall, Bernie Sanders, break the buck, Bretton Woods, business climate, business cycle, capital controls, central bank independence, centre right, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, currency peg, eurozone crisis, financial engineering, financial innovation, Flash crash, foreign exchange controls, George Akerlof, German hyperinflation, Google Earth, hiring and firing, inflation targeting, Isaac Newton, Julian Assange, low cost airline, low interest rates, market bubble, market design, middle-income trap, Money creation, money market fund, moral hazard, mortgage debt, new economy, Nixon triggered the end of the Bretton Woods system, Northern Rock, Paul Samuelson, price stability, public intellectual, quantitative easing, rent control, reserve currency, Robert Shiller, Robert Solow, rolodex, Ronald Reagan, Savings and loan crisis, savings glut, Socratic dialogue, sovereign wealth fund, The Great Moderation, too big to fail, union organizing, WikiLeaks, yield curve, Yom Kippur War

Had the Germans and French been able to work out a deal, it might well have prevented all-out economic collapse and steered Germany away from nationalism and militarism. Instead, the Reichsbank hiked interest rates to try to maintain the gold standard. A two-day “bank holiday” was declared and foreign exchange controls put in place to reduce outflows. Unemployment soared to 34 percent. So did hostility to the French and to most other non-Germans. The Nazis went from fringe party to ruling power. Even clever, urbane Hjalmar Schacht became an ally of Hitler, serving as a top economic official throughout the 1930s.

Stigum's Money Market, 4E by Marcia Stigum, Anthony Crescenzi

accounting loophole / creative accounting, Alan Greenspan, Asian financial crisis, asset allocation, asset-backed security, bank run, banking crisis, banks create money, Bear Stearns, Black-Scholes formula, book value, Brownian motion, business climate, buy and hold, capital controls, central bank independence, centralized clearinghouse, corporate governance, credit crunch, Credit Default Swap, cross-border payments, currency manipulation / currency intervention, currency risk, David Ricardo: comparative advantage, disintermediation, distributed generation, diversification, diversified portfolio, Dutch auction, financial innovation, financial intermediation, fixed income, flag carrier, foreign exchange controls, full employment, Glass-Steagall Act, Goodhart's law, Greenspan put, guns versus butter model, high net worth, implied volatility, income per capita, intangible asset, interest rate derivative, interest rate swap, inverted yield curve, junk bonds, land bank, large denomination, locking in a profit, London Interbank Offered Rate, low interest rates, margin call, market bubble, market clearing, market fundamentalism, Money creation, money market fund, mortgage debt, Myron Scholes, offshore financial centre, paper trading, pension reform, Phillips curve, Ponzi scheme, price mechanism, price stability, profit motive, proprietary trading, prudent man rule, Real Time Gross Settlement, reserve currency, risk free rate, risk tolerance, risk/return, Savings and loan crisis, seigniorage, shareholder value, short selling, short squeeze, tail risk, technology bubble, the payments system, too big to fail, transaction costs, two-sided market, value at risk, volatility smile, yield curve, zero-coupon bond, zero-sum game

Deregulation and Globalization of Debt Markets A major development in the United States and worldwide has been the breakdown of barriers of all kinds both around and within national capital markets; these include the lifting of restrictions on the issuance of securities, on who could borrow and on who could lend; on foreign exchange controls; and on the elimination of withholding taxes on interest paid to foreigners. In addition, the international payments system has advanced to the point where sending both securities and monies across borders has been simplified and standardized enough to entice investors to freely consider foreign investments as an alternative.

…

In its initial stages, the growth of the Eurodollar market was hampered by myriad exchange control regulations that all nations except the United States imposed on their residents with respect to (1) the use of domestic currency to acquire foreign exchange and (2) the disposition of foreign-exchange earnings. This changed in 1958 when the major European countries, with the exception of the United Kingdom, substantially liberalized their foreign-exchange controls as a first step toward making their currencies fully convertible. A fourth factor that stimulated the growth of the Eurodollar market was the operation of Regulation Q during the tight money years of 1968 and 1969. At that time, U.S. money rates rose above the rates that banks were permitted to pay under Reg Q on domestic, large-denomination CDs.

Extreme Money: Masters of the Universe and the Cult of Risk by Satyajit Das

"RICO laws" OR "Racketeer Influenced and Corrupt Organizations", "there is no alternative" (TINA), "World Economic Forum" Davos, affirmative action, Alan Greenspan, Albert Einstein, algorithmic trading, Andy Kessler, AOL-Time Warner, Asian financial crisis, asset allocation, asset-backed security, bank run, banking crisis, banks create money, Basel III, Bear Stearns, behavioural economics, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, Bonfire of the Vanities, bonus culture, book value, Bretton Woods, BRICs, British Empire, business cycle, buy the rumour, sell the news, capital asset pricing model, carbon credits, Carl Icahn, Carmen Reinhart, carried interest, Celtic Tiger, clean water, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, corporate raider, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency risk, Daniel Kahneman / Amos Tversky, deal flow, debt deflation, Deng Xiaoping, deskilling, discrete time, diversification, diversified portfolio, Doomsday Clock, Dr. Strangelove, Dutch auction, Edward Thorp, Emanuel Derman, en.wikipedia.org, Eugene Fama: efficient market hypothesis, eurozone crisis, Everybody Ought to Be Rich, Fall of the Berlin Wall, financial engineering, financial independence, financial innovation, financial thriller, fixed income, foreign exchange controls, full employment, Glass-Steagall Act, global reserve currency, Goldman Sachs: Vampire Squid, Goodhart's law, Gordon Gekko, greed is good, Greenspan put, happiness index / gross national happiness, haute cuisine, Herman Kahn, high net worth, Hyman Minsky, index fund, information asymmetry, interest rate swap, invention of the wheel, invisible hand, Isaac Newton, James Carville said: "I would like to be reincarnated as the bond market. You can intimidate everybody.", job automation, Johann Wolfgang von Goethe, John Bogle, John Meriwether, joint-stock company, Jones Act, Joseph Schumpeter, junk bonds, Kenneth Arrow, Kenneth Rogoff, Kevin Kelly, laissez-faire capitalism, load shedding, locking in a profit, Long Term Capital Management, Louis Bachelier, low interest rates, margin call, market bubble, market fundamentalism, Market Wizards by Jack D. Schwager, Marshall McLuhan, Martin Wolf, mega-rich, merger arbitrage, Michael Milken, Mikhail Gorbachev, Milgram experiment, military-industrial complex, Minsky moment, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, mortgage tax deduction, mutually assured destruction, Myron Scholes, Naomi Klein, National Debt Clock, negative equity, NetJets, Network effects, new economy, Nick Leeson, Nixon shock, Northern Rock, nuclear winter, oil shock, Own Your Own Home, Paul Samuelson, pets.com, Philip Mirowski, Phillips curve, planned obsolescence, plutocrats, Ponzi scheme, price anchoring, price stability, profit maximization, proprietary trading, public intellectual, quantitative easing, quantitative trading / quantitative finance, Ralph Nader, RAND corporation, random walk, Ray Kurzweil, regulatory arbitrage, Reminiscences of a Stock Operator, rent control, rent-seeking, reserve currency, Richard Feynman, Richard Thaler, Right to Buy, risk free rate, risk-adjusted returns, risk/return, road to serfdom, Robert Shiller, Rod Stewart played at Stephen Schwarzman birthday party, rolodex, Ronald Reagan, Ronald Reagan: Tear down this wall, Satyajit Das, savings glut, shareholder value, Sharpe ratio, short selling, short squeeze, Silicon Valley, six sigma, Slavoj Žižek, South Sea Bubble, special economic zone, statistical model, Stephen Hawking, Steve Jobs, stock buybacks, survivorship bias, tail risk, Teledyne, The Chicago School, The Great Moderation, the market place, the medium is the message, The Myth of the Rational Market, The Nature of the Firm, the new new thing, The Predators' Ball, The Theory of the Leisure Class by Thorstein Veblen, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, trickle-down economics, Turing test, two and twenty, Upton Sinclair, value at risk, Yogi Berra, zero-coupon bond, zero-sum game

The man and his family survived the earthquake and subsequent fire, managing to get out of the destroyed city by boat. His father paid the boatman, who would not accept money, in gold, secreted away for emergencies. Gold, the sweat of the god as the Incas called it, is hard money. It is the only money when chaos ensues. In the 1970s many Indians emigrated in search of a better life. Indian foreign exchange controls prevented legal conversion of worthless Indian rupees into real money—American dollars or British pound sterling. Emigrants resorted to Hawala or Hundi—an informal money transfer system. You needed an introduction to a money broker. You paid him your rupees. In return you received a small chit of paper on which were scrawled a few words in Urdu, a language spoken mainly in Pakistan and India.

Big Debt Crises by Ray Dalio

Alan Greenspan, Asian financial crisis, asset-backed security, bank run, banking crisis, basic income, Bear Stearns, Ben Bernanke: helicopter money, break the buck, Bretton Woods, British Empire, business cycle, buy the rumour, sell the news, capital controls, central bank independence, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, currency risk, declining real wages, equity risk premium, European colonialism, fiat currency, financial engineering, financial innovation, foreign exchange controls, German hyperinflation, global macro, housing crisis, implied volatility, intangible asset, it's over 9,000, junk bonds, Kickstarter, land bank, large denomination, low interest rates, manufacturing employment, margin call, market bubble, market fundamentalism, military-industrial complex, Money creation, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, mortgage debt, Northern Rock, Ponzi scheme, price stability, private sector deleveraging, purchasing power parity, pushing on a string, quantitative easing, refrigerator car, reserve currency, risk free rate, Savings and loan crisis, short selling, short squeeze, sovereign wealth fund, subprime mortgage crisis, too big to fail, transaction costs, universal basic income, uptick rule, value at risk, yield curve

In other words, currency declines allow countries to offer price cuts to the rest of the world (helping to bring in more business) without producing domestic deflation. So after supporting the currency in unsustainable ways (i.e., expending reserves, tightening monetary policy, making very strong assurances that there will not be a devaluation of the currency, and sometimes imposing foreign exchange controls), policy makers typically stop fighting and let the currency decline (though they generally try to smooth its fall). Here is what we typically see after policy makers let the currency go: The currency has a big initial depreciation, on average declining around 30 percent in real terms The decline in the currency is not offset by tighter short rates, so that the losses from holding the currency are significant (on average, around 30 percent in the first year) Because the decline is very severe, policy makers try to smooth it, leading them to continue to spend down reserves (on average, by another 10 percent for a year into the bust) Central banks should not defend their currencies to the point of letting their reserves get too low or their interest rates too high relative to what is good for the economy because the dangers those conditions pose are greater than the dangers of devaluation.

The Making of Global Capitalism by Leo Panitch, Sam Gindin

accounting loophole / creative accounting, active measures, airline deregulation, Alan Greenspan, anti-communist, Asian financial crisis, asset-backed security, bank run, banking crisis, barriers to entry, Basel III, Bear Stearns, Big bang: deregulation of the City of London, bilateral investment treaty, book value, Branko Milanovic, Bretton Woods, BRICs, British Empire, business cycle, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, carbon credits, Carmen Reinhart, central bank independence, classic study, collective bargaining, continuous integration, corporate governance, creative destruction, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, currency peg, dark matter, democratizing finance, Deng Xiaoping, disintermediation, ending welfare as we know it, eurozone crisis, facts on the ground, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, floating exchange rates, foreign exchange controls, full employment, Gini coefficient, Glass-Steagall Act, global value chain, guest worker program, Hyman Minsky, imperial preference, income inequality, inflation targeting, interchangeable parts, interest rate swap, Kenneth Rogoff, Kickstarter, land reform, late capitalism, liberal capitalism, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, low interest rates, manufacturing employment, market bubble, market fundamentalism, Martin Wolf, means of production, military-industrial complex, money market fund, money: store of value / unit of account / medium of exchange, Monroe Doctrine, moral hazard, mortgage debt, mortgage tax deduction, Myron Scholes, new economy, Nixon triggered the end of the Bretton Woods system, non-tariff barriers, Northern Rock, oil shock, precariat, price stability, proprietary trading, quantitative easing, Ralph Nader, RAND corporation, regulatory arbitrage, reserve currency, risk tolerance, Ronald Reagan, Savings and loan crisis, scientific management, seigniorage, shareholder value, short selling, Silicon Valley, sovereign wealth fund, special drawing rights, special economic zone, stock buybacks, structural adjustment programs, subprime mortgage crisis, Tax Reform Act of 1986, The Chicago School, The Great Moderation, the payments system, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transcontinental railway, trickle-down economics, union organizing, vertical integration, very high income, Washington Consensus, We are all Keynesians now, Works Progress Administration, zero-coupon bond, zero-sum game

The implication of this concentration of voting power was evident in the proposal that no member country would be allowed “to default on its external obligations . . . without consent of the Fund,” nor adopt any “monetary or banking or price measure or policy . . . which, in the opinion of a majority of the member votes, would bring about sooner or later a serious disequilibrium in the balance of payments.”38 On such vital issues, the US would in practice be able to decide. As to what matching restrictions would be imposed on financial capital, it was of course significant that White’s plan, while insisting that the overall goal was “to reduce the necessity and use of foreign exchange controls,” permitted states to maintain them.39 And although it was never on the cards that the US itself would impose them, White’s early drafts had contemplated, as a “far-reaching and important requirement,” that the US would be prepared to cooperate in policing the capital controls of other countries.

Roller-Coaster: Europe, 1950-2017 by Ian Kershaw

airport security, anti-communist, Apollo 11, Ayatollah Khomeini, banking crisis, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, Bretton Woods, Brexit referendum, British Empire, business cycle, centre right, colonial rule, cuban missile crisis, deindustrialization, Deng Xiaoping, Donald Trump, European colonialism, eurozone crisis, Exxon Valdez, failed state, Fall of the Berlin Wall, falling living standards, feminist movement, first-past-the-post, fixed income, floating exchange rates, foreign exchange controls, Francis Fukuyama: the end of history, full employment, Herbert Marcuse, illegal immigration, income inequality, Jeremy Corbyn, Johann Wolfgang von Goethe, labour market flexibility, land reform, late capitalism, Les Trente Glorieuses, liberal capitalism, liberation theology, low interest rates, low skilled workers, mass immigration, means of production, Mikhail Gorbachev, mutually assured destruction, Neil Armstrong, Nelson Mandela, Nixon triggered the end of the Bretton Woods system, North Sea oil, Northern Rock, oil shale / tar sands, oil shock, open borders, post-war consensus, precariat, price stability, public intellectual, quantitative easing, race to the bottom, reserve currency, rising living standards, road to serfdom, Ronald Reagan, Ronald Reagan: Tear down this wall, Sinatra Doctrine, Suez crisis 1956, The Chicago School, trade liberalization, union organizing, upwardly mobile, washing machines reduced drudgery, Washington Consensus, Winter of Discontent, young professional

Poverty levels in backward rural areas were profound, average incomes far lower, for example, than in Turkey. Belarus and Moldova, both of which, like Ukraine, were highly dependent on Russia, also suffered a prolonged deep economic depression during the 1990s. The response in Belarus after 1994, to restore price and foreign-exchange controls and restrict private enterprise, could not halt the economic decline. Moldova’s abrupt turn from a planned to a liberalized economy in 1992, with an infrastructure unprepared for such a drastic shift, produced huge inflation and unemployment, leaving much of the population in poverty and the country languishing among Europe’s poorest.

America in the World by Robert B. Zoellick

Albert Einstein, anti-communist, banking crisis, battle of ideas, Berlin Wall, Bretton Woods, British Empire, classic study, Corn Laws, coronavirus, cuban missile crisis, defense in depth, Deng Xiaoping, Donald Trump, Douglas Engelbart, Douglas Engelbart, energy security, European colonialism, facts on the ground, Fall of the Berlin Wall, foreign exchange controls, Great Leap Forward, guns versus butter model, hypertext link, Ida Tarbell, illegal immigration, immigration reform, imperial preference, Isaac Newton, Joseph Schumpeter, land reform, linear model of innovation, Mikhail Gorbachev, MITM: man-in-the-middle, Monroe Doctrine, mutually assured destruction, Nixon triggered the end of the Bretton Woods system, Norbert Wiener, Paul Samuelson, public intellectual, RAND corporation, reserve currency, Ronald Reagan, Ronald Reagan: Tear down this wall, scientific management, Scramble for Africa, Silicon Valley, Strategic Defense Initiative, The Wealth of Nations by Adam Smith, trade liberalization, transcontinental railway, undersea cable, Vannevar Bush, War on Poverty

But the president had too many other priorities with Britain in 1947, and the United States agreed to launch GATT even with Britain’s imperial preferences.113 This first multilateral trading round, with twenty-three participants, proved that cooperation on trade liberalization was possible. The parties cut tariffs on forty-five thousand items, covering about half of world trade. The process stimulated world trade even as economies were struggling to recover and remove foreign exchange controls. Some in Congress complained about a trade “giveaway,” but the new trade diplomacy helped unleash unparalleled economic growth in the United States and the world for decades. The engine of the American economy that eventually overwhelmed the USSR relied on a trading system imagined by Hull and Clayton.114 For Clayton, the launch of the GATT dovetailed with his mission to prod the Europeans to develop their Marshall Plan proposal.

Post Wall: Rebuilding the World After 1989 by Kristina Spohr

"World Economic Forum" Davos, Alan Greenspan, American Legislative Exchange Council, Andrei Shleifer, anti-communist, banking crisis, Berlin Wall, Bonfire of the Vanities, bread and circuses, Bretton Woods, central bank independence, colonial exploitation, Deng Xiaoping, Dissolution of the Soviet Union, Donald Trump, Doomsday Clock, facts on the ground, failed state, Fall of the Berlin Wall, foreign exchange controls, Francis Fukuyama: the end of history, G4S, Japanese asset price bubble, Kickstarter, mass immigration, means of production, Mikhail Gorbachev, military-industrial complex, open economy, operational security, Prenzlauer Berg, price stability, public intellectual, rising living standards, Ronald Reagan, Ronald Reagan: Tear down this wall, software patent, South China Sea, special economic zone, Thomas L Friedman, Transnistria, uranium enrichment, zero-coupon bond

Here, again, he showed his ability to forge compromises between proponents of different economic approaches, in particular building bridges between France and Germany.[92] And so at Madrid in June 1989 it was agreed by the leaders of the EC 12 to launch the following year the first stage of EMU – completion of the single market by 1992. This would involve abolition of all foreign-exchange controls, a free market in financial services and strengthening of competition policy – which entailed a radical reduction in state subsidies. The other prong of this policy was the reinforcement of social cohesion, which involved freedom of movement between states and guaranteed workers’ rights.

Corporate Finance: Theory and Practice by Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann le Fur, Antonio Salvi

"Friedman doctrine" OR "shareholder theory", accelerated depreciation, accounting loophole / creative accounting, active measures, activist fund / activist shareholder / activist investor, AOL-Time Warner, ASML, asset light, bank run, barriers to entry, Basel III, Bear Stearns, Benoit Mandelbrot, bitcoin, Black Swan, Black-Scholes formula, blockchain, book value, business climate, business cycle, buy and hold, buy low sell high, capital asset pricing model, carried interest, collective bargaining, conceptual framework, corporate governance, correlation coefficient, credit crunch, Credit Default Swap, currency risk, delta neutral, dematerialisation, discounted cash flows, discrete time, disintermediation, diversification, diversified portfolio, Dutch auction, electricity market, equity premium, equity risk premium, Eugene Fama: efficient market hypothesis, eurozone crisis, financial engineering, financial innovation, fixed income, Flash crash, foreign exchange controls, German hyperinflation, Glass-Steagall Act, high net worth, impact investing, implied volatility, information asymmetry, intangible asset, interest rate swap, Internet of things, inventory management, invisible hand, joint-stock company, joint-stock limited liability company, junk bonds, Kickstarter, lateral thinking, London Interbank Offered Rate, low interest rates, mandelbrot fractal, margin call, means of production, money market fund, moral hazard, Myron Scholes, new economy, New Journalism, Northern Rock, performance metric, Potemkin village, quantitative trading / quantitative finance, random walk, Right to Buy, risk free rate, risk/return, shareholder value, short selling, Social Responsibility of Business Is to Increase Its Profits, sovereign wealth fund, Steve Jobs, stocks for the long run, supply-chain management, survivorship bias, The Myth of the Rational Market, time value of money, too big to fail, transaction costs, value at risk, vertical integration, volatility arbitrage, volatility smile, yield curve, zero-coupon bond, zero-sum game

Since the early 2000s, the share of cash and cash equivalents on companies’ balance sheets has continued to grow: Source: Factset Part of this cash is not the result of a choice but of a constraint and it is not really available. Some funds are blocked in countries that have strict foreign exchange control rules, other funds involve the payment of additional taxes (withholding taxes) before they can be transferred to the parent company, and other funds are serving as deposits, guarantees, advance payments, etc., which in some countries have to be blocked in special accounts. And even if funds are not blocked, advance payments by customers will be used to make the products or services orders and to pay suppliers.