From Great Depression to Great Recession

Back Matter

Editor(s):
Atish Ghosh, and Mahvash Qureshi
Published Date:
March 2017
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    Index

    A

    • Adjustable pegged system, 73

    • Adjustment fatigue, 1

    • Agency bonds, 151, 156

    • Aldrich Plan, 51

    • Alliance systems, 103

    • Anglo-American Joint Statement, 112

    • Argentina, 19

      • bankruptcy of 1890, 95

    • Article VIII status, 15n17

    • Asian Infrastructure Investment Bank, 133, 169, 173

    B

    • Bagehot, Walter, 49, 52

    • Baker, James, 86

    • Bancor, 7

    • Bank balance sheets, 44

    • Bankers Trust Company, 46

    • Bank for International Settlements (BIS), 40, 48, 70, 75–80, 87, 139, 190, 212

    • Bank gluts, 42–43

    • Bankhaus Herstatt, 63

    • Banking crisis of 1931, 46–47

    • Banking regulation and supervision

      • Basel Committee, 63, 191

      • EU/EEC and, 62–64

      • Single Supervisory Mechanism, 66

    • Banking union, 62–64

    • Bank loans, relative to GDP, 41–42, 43f

    • Bank of England, 49, 50, 139

    • Bank of Japan, 162

    • Bank War, 95

    • Banque de France, 75, 77, 79

    • Barre, Raymond, 58, 59, 60

    • Barre memoranda, 58

    • Basel Agreements, 64, 76, 220

    • Basel Committee on Banking Supervision, 63, 191

    • Berlusconi, Silvio, 100

    • Bernanke, Ben, 38, 123

    • Bilateral Concerte, 75

    • BIS. See Bank for International Settlements

    • Blanchard, Olivier, 205

    • Bombay Plan, 116

    • Bond markets

      • central bank interactions in, 154–62

      • in emerging markets, 153

      • emerging market sales in 2015, 159–62

      • monetary policy without global effects from, 148–50

      • reinforcing operations, 156–59

      • transatlantic divergence in, 162

    • Bond yields

      • conundrum of, 156, 157f

      • emerging market, 126f

      • policy rates and, 154, 155f

      • spillover of, 152–54

    • Bonn summit of 1978, 18, 69, 75, 220

    • Bouey, Gerald, 79

    • Brazil, 19, 111–13, 116–17, 125, 159, 160f

    • Bretton Woods, v, vii, 2, 52, 69, 80–81

      • capital movement control and, 92

      • collapse of, 12–14, 71, 130

      • compliance problems, 71

      • cooperation in, 15

      • coordination failures during, 70–72

      • emerging powers objectives at, 114–17

      • emerging powers role in, 111–14

      • establishment of, 6–9

      • IMF and, 129–30

      • international development and, 117, 119

      • international monetary reform and, 87

      • liquidity mechanisms lacking in, 140

      • macroeconomic policy shifts after, 131

      • negotiations for, 111–14

      • New Deal and, 106, 118

      • reform efforts, 120–21

      • shortcomings of, 9–12

      • US priorities and, 117–20

    • Bretton Woods Conference, 112, 113, 117, 137, 193

    • BRICs, 104, 127, 128f, 133

    • Budgetary Policy Committee, 59

    • Bundesbank, 75–80

    • Burns, Arthur, 78, 81–82

    C

    • C20. See Committee of Twenty

    • CACs. See Collective actions clauses

    • Camdessus, Michel, 75, 197

    • Canada, 141

    • Cannes C20 Heads of State Summit, 86

    • Capital accounts

      • emerging market crises in, 19

      • international monetary and financial system viewed through, 39

      • in interwar period, 40–47

    • Capital controls, 192

      • structural, 9

    • Capital flight, 45

    • Capital flows

      • bank gluts and, 42

      • controls on, 9

      • disturbances from, 91

      • economic policymaking weakened by, 98

      • EEC and, 65

      • Euro introduction and, 96

      • exchange rates and, 4

      • fixed exchange rates and, 97

      • growing volume of, 220

      • IMF and management of, 222, 223

      • international, in interwar period, 42, 43, 45–47

      • net, 1880–1913, 3f

      • policy coordination and, 220, 221

      • political economy trilemma and, 97–98

      • private, v

      • reserves and, 143

      • stability during gold standard period, 4

      • into United States shadow banking system, 47–48, 48f

      • US controls on, 9

      • volatility in, 23

      • vulnerability increased by, 94

    • Capital mobility, 9

      • attractiveness of, 93

      • globalization and, 105

      • trilemmas and, 104–5

    • Capital movements

      • Euro and, 96

      • exchange rates and, 189

      • IMF and control of, 92, 118

    • Cassel, Gustav, 6

    • Central Bank of Brazil, 159

    • Central banks

      • bond market interactions, 154–62

      • creating of US, 51, 95

      • financial crises and, 50

      • See also European Central Bank

    • Chetty, R. K. Shanmukhan, 112, 116

    • Chiang Mai countries, 127

    • Chiang Mai Initiative, 133, 169

    • China, 104, 111–12, 115, 141, 198, 207

    • Chinese Communist Party, 115

    • Clappier, Bernard, 77

    • Cold War, 119

    • Collective actions clauses (CACs), 222

    • Commission of the European Communities, 63

    • Committee of Twenty (C20), 13, 72–75, 73t, 82–83

      • IMF proposal for, 73

      • Nairobi meeting of 1973, 85

      • rules-based coordination and, 84

    • Competitive devaluations, 28n19

    • Contingent Reserve Arrangement (CRA), 127, 133, 169

    • Conundrum, 156, 157f

    • Convertibility

      • of renminbi, 198

      • suspension of, 81

    • Cooper, Richard, 191, 192

    • Cooperative agreement, 178n1

    • Coordinated equilibrium, 179

    • Coordinating mechanisms, 210–11

    • Coordination failures, during Bretton Woods, 70–72

    • CRA. See Contingent Reserve Arrangement

    • Credit booms, 47

    • Credit Suisse, 167

    • Credit supercycle, 101

    • Crisis prevalence, 16f, 19, 20f

    • Cross-border capital flows, 1, 2n1, 43, 45, 217, 223

    • Cross-border multiples, 221

    • Cross-border transmission effects, 186–87

    • Currency wars, v, 1, 28, 147, 157, 190, 211–12

    • Current account adjustments, 26, 27f, 194, 194f

    • Current account imbalances, 20–22, 22f, 39, 40, 207, 216

    • Current accounts

      • in East Asia, 207

      • emerging market, 126f

      • in Euro area, 194, 194f

      • international monetary and financial system viewed through, 39

      • in interwar period, 40–47, 41f

      • trade balances and, 142

      • of US, 195, 195f

    D

    • Darmstädter, 47

    • Dawes Loan, 5

    • Dawes Plan, 5

    • Debt-inflation, 97–98

    • Decentralized policymaking, 209

    • Decision-making units, 40

    • “Defects and Needs of Our Banking System” (Warburg, P.), 50

    • Deflationary bias, v

    • de la Geniere, Renaud, 79

    • Delors report, 58

    • Democracy

      • failure in Germany of, 99

      • gold standard and, 101

      • international order and, 102

      • long-term policy and, 106

      • operations of, 101

      • restraints on destabilizing impulses of, 103

      • short-term policy and, 97

      • sustainability and, 106

    • Deshmukh, Chintaman, 112, 116

    • Deutsche Bank, 46, 47

    • Developing countries, monetary policy resilience of, 125

    • Dini, Lamberto, 74

    • Diplomatic commitments, 103

    • Disconto Gesellschaft, 47

    • Discretionary coordination mechanisms, 210

    • Disruption risks, 168

    • Domestic financial expansion, 94

    • Domestic indicators, 86

    E

    • East Asia

      • current accounts of, 207

      • financial crisis of 1997, 96

    • Economic and Monetary Union (EMU), 57, 59, 61

    • Economic policymaking, capital inflows weakening, 98

    • EEC. See European Economic Community

    • Effective market classification, 208

    • EIB. See European Investment Bank

    • Élysée Treaty, 60

    • Emerging market capital account crises, 19

    • Emerging market economies

      • large-scale reserve holdings by, 190

      • multicurrency arrangements and, 198

      • net financial flows to, 20, 21f

    • Emerging markets

      • bond markets in, 153

      • bond rate yields, 126f

      • bond sales in 2015, 159–62

      • current account balances, 126f

      • democracy in, 101

      • dollar-denominated debt in, 216

      • globalization and, 101

      • reserve investment, 156–59, 158f

      • US policy effects on, 125

    • Emerging powers

      • Bretton Woods objectives, 114–17

      • Bretton Woods role of, 111–14

    • Emminger, Otmar, 77, 78

    • EMS. See European Monetary System

    • EMU. See Economic and Monetary Union

    • Equilibrium values, 220

    • ERM. See Exchange Rate Mechanism

    • EU. See European Union

    • Euro

      • capital movements and, 96

      • as reserve asset, 198

    • Euro area

      • current account balances in, 194, 194f

      • design failures, 57

      • US bond market and, 159

    • European Central Bank, 139, 144

      • quantitative easing by, 66

    • European Commission, 101

    • European Court of Justice, 66

    • European debt crisis of 2009, 57

    • European Economic Community (EEC), 57, 58

      • banking regulation and supervision, 62–64

      • capital flow liberalization and, 65

      • economic policy committees, 59

      • financial transfers, 61–62

    • European Investment Bank (EIB), 61

    • European Monetary System (EMS), 58, 60, 62, 192

    • European Regional Development Fund, 61

    • European Stability Mechanism, 169

    • European Union (EU), 57

      • banking regulation and supervision, 62–64

      • global financial crisis of 2008 and, 104

      • as global governance model, 101

      • macroeconomic policy cooperation, 59–61

      • single market project, 64–65

    • Excess financial elasticity, 39, 41

    • Exchange Rate Mechanism (ERM), 62

    • Exchange rates, 14f, 147

      • capital flows and, 4

      • capital movements and, 189

      • fixed, v, 97, 103, 105–6, 209, 210

      • floating, 15–16, 18–19, 76, 189, 210

      • IMF and assessment of, 222, 223

      • macroeconomic trilemma and, 92

      • pegged, 81, 87

      • policy coordination and, 190

      • policy trilemma and, 91

      • real effective, 30f

      • volatility in, 17f

    • Exorbitant privilege, 71, 167

    • External adjustment, 26

    • External indicators, 86

    F

    • Fannie Mae, 151

    • FCL. See Flexible Credit Line

    • Federal Open Market Committee, 78, 124

    • Federal Reserve, 18, 21, 50, 162

      • anti-inflation programs, 77–80

      • Bundesbank swaps with, 78

      • creation of, 51

      • foreign exchange interventions, 76

      • global financial crisis responses, 139–40

      • large-scale asset purchase programs, 150–52, 153, 159

      • non-US borrower dollar bond issuance and, 151–52, 152f

      • policy rates, 156

      • reassessment of pegged exchange rates, 81

      • swap lines, 125, 139

      • taper proposal, 123–24

    • Federal Reserve Bank of New York (FRBNY), 47, 77, 79

    • Fiduciary dollar standard, 193

    • Fifteenth General Review of Quotas, 169, 170, 173

    • Fifteenth Jacques Polak Annual Research Conference, v

    • Financial contagion, 38

    • Financial globalization, 131

    • Financial imbalances, political strains from, 97

    • Financial Stability Board (FSB), 105, 132–33, 191, 212

    • Financial stability trilemma, 93–97, 98f

    • Financial transfers, 61–62

    • First Bank of the United States, 51

    • Fiscal Compact. See Treaty on Stability, Coordination, and Governance

    • Fiscal expansion, v

    • Fixed exchange rates, v, 209

      • capital flows and, 97

      • as coordinating mechanism, 210

      • interwar Italy and, 103

      • political coordination and, 105–6

    • Flexible Credit Line (FCL), vi, 139, 221–22

    • Floating exchange rates, 15–16, 18–19, 189

      • coordination under, 210

      • transition to, 76

    • Foreign exchange reserves, 142, 149, 150f

      • emerging market investment of, 156–59, 158f

    • “Four Freedoms” speech (Roosevelt), 117

    • Fourteenth General Review of Quotas, 168–69

    • France, 2, 9, 206

      • macroeconomic policy coordination efforts, 60

      • Russia alliance with, 103

    • Franco-Prussian war, 49

    • FRBNY. See Federal Reserve Bank of New York

    • Freddie Mac, 151

    • Free capital mobility, 9

      • policy constraint from, 92

    • Free financial markets, 216

    • Free trade, 9, 118

    • Friedman, Milton, 131

    • FSB. See Financial Stability Board

    • Fundamental disequilibrium, 71, 84, 141

    G

    • G3. See Group of Three

    • G5. See Group of Five

    • G7. See Group of Seven

    • G10. See Group of Ten

    • G10+2, 75–77

    • G10 deputies, 72–75, 73t

    • G20. See Group of Twenty

    • G24. See Group of 24 on International Monetary Affairs

    • Game theory, 205

    • GATT. See General Agreement on Tariffs and Trade

    • GDP, growth rates 2008–17, 30f

    • Geithner, Tim, 86

    • General Agreement on Tariffs and Trade (GATT), 82, 83, 144

    • Genoa Economic and Monetary Conference of 1922, 4, 4n5

    • Germany, 2, 5, 9, 18, 141–42, 206

      • bank balance sheets in, 44

      • banking crisis of 1931 in, 46–47

      • democratic failure in, 99

      • Great Depression and, 104

      • interwar banking expansion, 96

      • interwar period current accounts, 40, 41f, 42, 44–47

      • macroeconomic policy coordination efforts, 60

      • Reichsbank creation, 49

      • reparations appeal, 47

    • Ghosh, Atish, 205

    • Giscard d’Estaing, Valéry, 60, 84–85

    • Global financial crisis of 2008, 1–2, 23, 39, 69, 92, 101

      • European Union and, 104

      • investment rates after, 28, 29f

      • monetary system reform discussions and, 139

      • responses to, 139–40

      • Russia and, 104

    • Globalization, 2, 52, 91

      • capital mobility and, 105

      • emerging market democracy and, 101

      • financial, 131

    • Global liquidity, 10, 10f, 11, 13

      • SDRs and, 223–24

    • Global monetary system

      • current problems in, 193–97

      • reforming, 197–202

    • Global savings glut, 22

    • Gold exchange standard, 42

    • Gold Pool, 195

    • Gold prices, 14f

    • Gold reserves, v

    • Gold standard, v, 2, 4, 39

      • attractiveness of, 94

      • democracy and, 101

    • Good Neighbor policy, 117

    • Great Depression, 1, 6, 23, 37–38, 140, 215

      • bank gluts and, 42

      • democratic failure in, 99

      • G7 macroeconomic performance in, 8f

      • Germany in, 104

      • macroeconomic performance in, 24f

      • politics in, 101

      • US macroeconomic performance in, 7f

      • world trade collapse in, 25f

    • Great Recession, 1, 23

      • macroeconomic performance in, 24f

      • world trade collapse in, 25f

    • Great Society programs, 9

    • Greece, 99, 100, 104

    • Grillo, Beppe, 100

    • Gross capital flows, 221

    • Group of 24 on International Monetary Affairs (G24), 73t

    • Group of Five (G5), 19, 73t

    • Group of Seven (G7), vii, 73t

      • coordination efforts in, 206

      • macroeconomic performance, 1880–1913, 3f

      • macroeconomic performance, 1881–1970, 16f

      • macroeconomic performance in Great Depression, 8f

      • monetary policy coordination of, 19

    • Group of Ten (G10), 72, 78

    • Group of Three (G3), 210

    • Group of Twenty (G20), vii, 137, 138

      • current accounts as focus of, 39

      • fiscal stimulus by, 220

      • global financial crisis responses, 140

      • IMF reforms and, 132–33

      • London summit of April 2009, 169

      • Seoul meeting of 2010, 86

    • Guaranty Trust Company, 46

    H

    • Haferkamp, Wilhelm, 63

    • Hague Summit of 1969, 72

    • Hamilton, Alexander, 51

    • Hansen, Alvin, v

    • Hitler, Adolf, 104

    • Hume, David, 39

    • Hyperinflation, 95

    I

    • IBRD. See International Bank for Reconstruction and Development

    • IMF. See International Monetary Fund

    • IMFC. See International Monetary and Financial Committee

    • Imperial systems, 103

    • Inconsistent quartet, 92

    • Independent monetary policy

      • democracies and, 97

      • macroeconomic trilemma and, 92

    • India, 111, 112, 115–16, 120, 125

    • Indicators proposals, 80–87

    • Industrialization, 115–16

    • Inequity bias, 196

    • Infant-industry tariffs, 118

    • Instruments, 208–10

    • Integrated Surveillance Decision, vii, 225

    • Inter-American Bank, 116, 118

    • Interest Equalization Tax, 9

    • Interest rates

      • anti-inflationary policies and, 78–80

      • long-term, 139

      • panic of 1907 and, 50

      • short-term, 148, 159

    • Interest rate swap spreads, 161–62, 161f

    • Interim Committee, 73t

    • International adjustment, 189

    • International Bank for Reconstruction and Development (IBRD), 115, 116, 118, 119

    • International development, 117, 119

    • International Monetary and Financial Committee (IMFC), 170

      • substitution accounts, 198

    • International Monetary Fund (IMF), v–vii, ix, 1, 2, 37, 210

      • arrangements, 1952–1985, 18f

      • arrangements, 1952–2012, 19, 20f

      • Article IV, 14, 15n17

      • Article IV consultations, 14, 15n17, 84

      • Article VIII status, 15n17

      • Article XIV, 15n17

      • Brazil and, 116–17

      • Bretton Woods system and, 129–30

      • BRICs and, 127, 128f

      • C20 proposed by, 73

      • capital flow management and, 222, 223

      • capital movement control and, 92, 118

      • creation of, 7–9

      • enhancing role of, 221–24

      • exchange rate assessment and, 222, 223

      • exchange rate stability and, 70

      • Executive Board, 52, 86

      • FCL created by, 139

      • financial resource adequacy, 168

      • G20 and reforms of, 132–33

      • General Resources account, 200

      • global financial safety net and, 221–22

      • governance of, 132, 169

      • India and, 116

      • internal reforms, 132

      • Latin America and, 113

      • liquidity regulation and, 223–24

      • membership, 9f, 10f, 143

      • multilateral consultation, 21–22

      • as neutral assessor, 224

      • Plan X and, 82

      • policy advice, 222

      • policy coordination and, 215

      • quota reforms, 167, 171–72

      • quota reviews, 168–69, 170, 173

      • reform proposals, 170–73

      • reserves and, 82

      • revision of Articles of Agreement, 74

      • SDR account, 200

      • SDR allocation rules, 199

      • SDR creation by, 11–12, 130, 140

      • short-term lending role, 118

      • sovereign debt restructuring and, 222

      • spillovers and, 224

      • SupraFund proposal, 172–73

      • surveillance, 14–15, 16, 74, 131

      • Ukraine and, 123

      • waiver clause, 119

    • International monetary reform, 87

      • alternative forums for, 72–75, 73t

      • Plan X and, 82

    • International monetary system

      • capital accounts and, 39

      • core challenges of, v, 220

      • current accounts and, 39

      • reform debates, 83

      • reform proposals, 137–45

    • International order, 102

    • International policy cooperation, 219–21

    • International policy coordination, v–vii, 2, 69, 180f

      • analytics of, 177–85

      • Bretton Woods failures of, 70–72

      • currency wars and, 211–12

      • encouraging, 215–16

      • exchange rates and, 190

      • mechanisms for, 210–11

      • missed opportunities for, 206–8

      • multiplier uncertainty and, 182–83

      • myths about, 177, 185–87

      • policy impact disagreements and, 217

      • principles for effective, 208–10

      • problems in, 190

      • sustaining, 183–84

      • in theory, 205–6

    • International relations trilemma, 102–4, 105f, 106

    • International reserve assets, 200

    • International reserves, vi

    • Interwar period, v, 4–6

      • banking expansion in, 96

      • capital and current accounts in, 40–47

      • hyperinflation in, 95

      • international capital flows in, 42, 43, 45–47

    • Israeli-British Bank, 63

    • Italy, 100, 103–4

    J

    • Jackson, Andrew, 95

    • Japan, 9, 18, 80, 82, 141–42, 162, 196, 206–7

    • Jenkins, Roy, 65

    • Juncker, Jean-Claude, 101

    K

    • Keynes, John Maynard, 5–9, 11, 111, 112, 193, 201

    • King, Mervyn, 139

    • Kissinger, Henry, 81–82

    • KMT. See Kuomintang

    • Knight, Malcolm, 133

    • Kohn, Donald, 125

    • Kung, H. H., 115

    • Kuomintang (KMT), 114, 115

    L

    • Lagarde, Christine, 170

    • Lamfalussy, Alexandre, 197

    • Large-scale asset (bond) purchase program (LSAP2), 159

    • Large-scale bond purchases, 147–48, 150–52

    • Latin America, 120

      • IMF board seats from, 113

      • US financial assistance to, 118

    • Law of National Guaranteed Banks of 1887, 95

    • League of Nations, 106

    • Lee, Higginson & Co., 44

    • Lehman Brothers failure, 37, 49, 139, 196

    • Lipton, David, 177

    • Liquidity regulation, 223–24

    • Liquidity sources, 189

    • Lloyds Lugano rogue trading scandal, 63

    • London Conference of 1921, 4n6

    • London G20 summit of April 2009, 169

    • London summit of 1977, 18

    • Long-term capital flows, 4

    • Long-term interest rates, 139

    • Long-term policy, democracy and, 106

    • Lost decade, 19

    • Louvre Accord of 1987, 19, 69, 206–8, 220, 225

    • LSAP2. See Large-scale asset (bond) purchase program

    • Luxembourg, 101

    M

    • Maastricht Treaty. See Treaty on European Union of 1992

    • MacDougall report, 61

    • Macro-coordination problems, 191

    • Macroeconomic performance

      • exchange rates and, 17f

      • of G7, 1881–1970, 16f

      • in Great Depression vs. Great Recession, 24f

      • of US, in Great Depression, 7f

    • Macroeconomic policies

      • coordination of, 60, 177

      • Nash equilibrium in, 178

      • shifts in, after Bretton Woods, 131

      • spillover of, 178

    • Macroeconomic policy cooperation, 69 in EU, 59–61

    • Macroeconomic trilemma, 92–93, 93f

    • Madan, B. K., 112

    • Managed floating exchange rates, 189

    • Mao Tse-Tung, 115

    • Marjolin, Robert, 59

    • Marjolin report, 57, 61

    • Marshall Aid, 9

    • McKenna, Reginald, 45

    • Medium-Term Economic Policy Committee, 59

    • Mexico, 19, 113, 125

    • Micro-coordination problems, 191

    • Ministerial Adjustment Committee, 80

    • Misaligned incentives, 220

    • Mitterrand, François, 60

    • Monetary coordination, 87

    • Monetary independence, 100

    • Monetary policy

      • currency wars and, 211–12

      • democracies and independence in, 97

      • democracies and long-term, 106

      • developing countries and resilience of, 125

      • without global bond market effects, 148–50

      • macroeconomic trilemma and, 92

      • nineteenth-century, 94

      • objectives of, 212

      • unconventional, 147–48

    • Monetary unions, 105

    • Money market funds, 49

    • Monti, Mario, 100

    • Morgan, J.P., 51

    • Morgenthau, Henry, vii, 119, 121

    • Multicurrency arrangements, 198

    • Multilateral institutions, 106

    • Multilateral trade liberalization, 186

    • Multiplier uncertainty, 182–83

    • Mundell, Robert, 58, 93, 94

    • Mundell’s principle of effective market classification, 208, 209

    • Mundell trilemma, 100

    • Munich Security Conference, 104

    • Mussolini, Benito, 103–4

    • Mutual Assessment Process, 86, 87

    N

    • NAB. See New Arrangements to Borrow

    • Nairobi C20 meeting of 1973, 85

    • Nash equilibrium, 178, 179, 181–82, 205–6, 209

    • Nationalbank (Danat), 47

    • National Monetary Commission, 41

    • National sovereignty, 99, 100

    • Nederlandsche Bank, 77

    • Net capital flows

      • 1880–1913, 3f

      • imbalances in, 221

    • The Netherlands, 141

      • interwar period capital flows and, 45–47

    • Network externalities, 193

    • Neutral assessors, vii

    • New Arrangements to Borrow (NAB), 168

    • New Deal, 106, 113, 118

    • New Democracy, 99

    • New Development Bank, 169

    • New International Economic Order (NIEO), 120

    • New York Stock Exchange, 5

    • New York Times Annual Financial Review, 50

    • NIEO. See New International Economic Order

    • Nixon, Richard, 12–13, 71, 83, 141

    • Nixon shock, 13

    • Noncooperative equilibrium, 178n1

    • Nonneutrality of money, 211–12

    • Normalization, 42

    O

    • Objective indicators, 84

    • OCAs. See Optimum currency areas

    • OECD. See Organisation for Economic Co-operation and Development

    • OECD Working Party 3, 72, 73t

    • Oil price shock of 1974, 13, 15

    • Oil price shock of 1979, 18

    • OPEC. See Organization of the Petroleum Exporting Countries

    • Optimum currency areas (OCAs), 58

    • Organisation for Economic Co-operation and Development (OECD), 72, 73, 210

      • reserves of member countries, 196, 197f

      • SDR quotas and, 199

    • Organization of the Petroleum Exporting Countries (OPEC), 76, 141

    • Original sin problem, 190

    • Ortoli, François-Xavier, 65

    • Ostry, Jonathan, 205

    P

    • Padoa-Schioppa, Tommaso, 197

    • Palais Royal Initiative, 167, 197

    • Panic of 1907, 37, 41, 50, 51

    • Panic of 1929, 38

    • Panics of 1931, 38

    • Papandreou, George, 99

    • Papantoniou, Yiannos, 96

    • Pareto analysis, 205

    • Paris Peace Conference of 1919, 115

    • Pasok party, 99

    • Payments imbalances, 1

    • Pegged exchange rates, 81

      • rules-based, 87

    • Pierre-Brossolette, Claude, 85

    • Plan X, 82–83

    • Plaza Accord, v, vii, 19, 69, 206–8, 220, 225

    • Podemos party, 100

    • Pöhl, Karl Otto, 75, 79

    • Point Four program, 119

    • Polak, Jacques, 200

    • Policy rates, 149f

      • bond yields and, 154, 155f

      • SELIC, 159

    • Policy trilemmas, 91

    • Political coordination, fixed exchange rates and, 105–6

    • Political economy trilemma, 97–101, 102f

    • Political reforms, 100–101

    • Political unions, 103

    • Popular Party, 100

    • Populist parties, 99

    • Preuss, Hugo, 99

    • Price-specie flow, 2

    • Private capital, 189

    • Private capital flows, v

    • Putin, Vladimir, 104, 127

    Q

    • Quantitative easing, 30f, 150, 156–59

      • by European Central Bank, 66

    • Quantitative indicators, 86

    • Quantitative tightening, 149, 159–62

    R

    • Rajan, Raghuram, 124, 125

    • RBI. See Reserve Bank of India

    • Real effective exchange rate, 30f

    • Reciprocity, 223

    • Redistribution of resources, 101, 102

    • Regional financial agencies, 133

    • Reichsbank, 44, 47, 49, 96

    • Reichsmark, 5

    • Reinforcing bond market operations, 156–59

    • Renminbi, 132, 160, 201, 207–8

      • convertibility, 198

      • international transactions with, 143

    • Reserve assets

      • Euro as, 198

      • SDRs as, 200

    • Reserve Bank of India (RBI), 112, 124

    • Reserve management, 156–59

    • Reserves

      • capital flows and, 143

      • emerging market economy holdings, 190

      • emerging market investment of, 156–59, 158f

      • multicurrency arrangements and, 198

      • of OECD countries, 196, 197f

      • stockpiling of, 23, 26f

      • SWFs and, 145

      • US, 11f

    • Residence principle, 39–40

    • Reuss, Henry, 78

    • Revealed performance, 178n1

    • Reykjavik summit of 1973, 84

    • Roosevelt, Franklin, 111, 117, 119

    • Rothschild, 101

    • Rules-based coordination, 84

    • Rules-based coordination mechanisms, 210

    • Rules-based policy, 81, 87

      • indicators proposals and, 83

    • Russia, 19, 103, 104

      • See also Soviet Union

    S

    • Safe assets, 51

    • Sarkozy, Nicolas, 137

    • Savings glut, 39

    • Scarce currency clause, 141

    • Schenk, Catherine, 177

    • Schmidt, Helmut, 60

    • SDRs. See Special Drawing Rights

    • SEA. See Single European Act

    • Second Amendment to the Articles of Agreement, v

    • Second Bank of the United States, 51, 95

    • Secular stagnation, v, vi, 1, 26, 28, 140

    • Security regimes, 103

    • Segré, Claudio, 64

    • Self-insurance, 196

    • SELIC policy rate, 159

    • Shadow banking system, 47–48, 48f, 216

    • Short Term Economic Policy Committee, 59

    • Short-term policy, democracy and, 97

    • Shroff, Ardeshir Darabshaw, 112, 116

    • Shultz, George, 82, 83

    • Singapore, 125

    • Single European Act (SEA), 65

    • Single-market project, 64–65

    • Single Markets Act II, 64

    • Single Supervisory Mechanism, 66

    • Smithsonian Agreement, 13, 71, 141

    • South Korea, 125

    • Sovereign debt restructuring, 222

    • Sovereign wealth funds (SWFs), 145

    • Soviet Union

      • Bretton Woods and, 52

      • collapse of, 19

    • Spain, 99–100

    • Special Drawing Rights (SDRs), vi, 11n13, 72, 132, 137, 191

      • adding currencies to basket for, 201

      • allocation of, 138, 143, 144, 199

      • creation of, 11–12, 130, 140

      • global currencies and, 199

      • global liquidity and, 223–24

      • as international reserve asset, 200

      • Plan X and, 82

      • Shultz proposal and, 83

      • substitution account with, 201

    • Spillovers, 74, 178, 211–12

      • bond yield, 152–54

      • IMF and, 224

      • management of, 52

      • skewed analysis of, 221

      • Treasury yield, 153, 154f

    • Stability and Growth Pact, 60

    • Sterling, devaluation of, 71, 75

    • Stiglitz Commission, 197

    • Stock market crash of October 1987, 19

    • Structural capital controls, 9

    • Subprime crisis, 47, 216

    • Substitution accounts, 86, 198, 201

    • Suez Crisis, 9

    • Summers, Larry, v

    • Sun, Yat-Sen, 115

    • SupraFund proposal, 172–73

    • Sustainability, 106

    • Swap lines, 125, 139

    • SWFs. See Sovereign wealth funds

    • Switzerland, 190

      • bank assets, 1906–38, 45f

      • interwar period capital flows and, 45–47

    • Syriza party, 99

    T

    • Targets, 208–10

    • Taylor rule, 148, 149f

    • Term premium, 150

      • compression of, 151–52

    • Third Group Arrangement, 76, 77

    • Thirteenth General Review of Quotas, 168

    • “Tied hands” argument, 102

    • Tinbergen principle, 208

    • Trade theory, 178–82, 180f

    • Transfer problem, 5, 39

    • Transmission uncertainty, 183–84

    • Treasury bonds, 151

      • conundrum in, 156, 157f

      • foreign official holdings of, 161–62, 161f

      • yield spillovers, 153, 154t

    • Treaty on European Union (Maastricht Treaty) of 1992, 58, 65, 66

    • Treaty on Stability, Coordination, and Governance (Fiscal Compact/TSCG), 61

    • Triffin, Robert, 71, 140, 194

    • Triffin dilemma, 10–12, 140–41, 190, 194–95, 201

    • Trilemmas, 91

      • capital mobility and, 104–5

      • financial stability, 93–97, 98f

      • implications of, 104–7

      • international relations, 102–4, 105f, 106

      • macroeconomic, 92–93, 93f

      • Mundell, 100

      • political economy, 97–101, 102f

    • Truman, Harry, 119

    • TSCG. See Treaty on Stability, Coordination, and Governance

    • Tugendhat, Christopher, 63

    • Turkey, 19

    U

    • Ukraine, 123, 124f

    • United Kingdom, 2, 5, 6, 9

      • Article VIII status, 15n17

      • Bretton Woods negotiations and, 114

      • interwar period current accounts and, 40–42

    • United Nations, 113

    • United Nations Security Council, 52

    • United States (US), 206

      • anti-inflationary programs in, 77–80

      • balance of payment deficits in 1960s, 9

      • bond market, 159

      • bond yield conundrum, 156, 157f

      • Brazil and, 159

      • Bretton Woods collapse and, 71

      • Bretton Woods negotiations and, 111–14

      • Bretton Woods priorities of, 117–20

      • budget deficit reduction, 18

      • capital outflow controls, 9

      • China economic cooperation with, 115

      • creation of central banks of, 51, 95

      • current account, 195, 195f

      • developing country monetary policy and, 125

      • emerging market holdings of debt from, 216

      • Euro area and, 159

      • German borrowing from, 45–46

      • gold window closed by, 141, 193

      • IMF quota reforms and, 167

      • interwar period current accounts and, 40–43

      • Latin America financial assistance from, 118

      • macroeconomic performance in Great Depression, 7f

      • National Monetary Commission in, 41

      • real exchange rate, 195, 195f

      • reassessment of pegged exchange rates, 81

      • reserves, 11f

      • shadow banking system in, 47–48, 48f

      • subprime mortgage market in, 216

      • trade agendas of, 190

      • trade balance, 12–13, 13f

    • Uruguay, 19

    • US dollar

      • as international currency, 194–95

      • as main global currency, 70–71

      • run on, of 1967, 75

      • shortages of, 49

      • Triffin dilemma and, 194–95

    V

    • Vargas, Getúlio, 116

    • Varoufakis, Yanis, 100, 104

    • Vietnam War, 9

    • Volcker, Paul, 18, 71, 77–80, 84–85

    • Volcker Group, 80–81

    • Volcker shock, 78–79

    W

    • Wallich, Henry, 77, 79

    • Warburg, Max, 50

    • Warburg, Paul, 50–51

    • Wardhana, Ali, 83

    • Weber, Max, 99

    • Weimar Germany, 99

    • Werner, Pierre, 58

    • Werner Plan, 58, 59

    • White, Harry Dexter, vii, 7–9, 111, 112, 113, 118

    • Wiggin-Layton Committee, 44

    • Wilhelm II (Kaiser), 50

    • Williamson, John, 73, 82, 84, 200

    • Working Party 3, 72, 73t

    • World Bank, 83, 133, 139, 144

    • World Economic Forum, 137

    • World Economic Outlook, 37, 74

    • World Trade Organization (WTO), 132, 138, 190, 192, 212

    • World War I, 4, 6

      • hyperinflation after, 95

    • World War II, 1

    • WTO. See World Trade Organization

    Y

    • Yanukovych, Viktor, 123

    Z

    • Zhou En-lai, 115

    • Zijlstra, Jelle, 77, 79

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