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Hardcover | Out of Print | ISBN: 9780262050678 | 385 pp. | 7 x 9 in | 35 illus. | December 2002
Paperback | $34.00 Short | £24.95 | ISBN: 9780262550598 | 385 pp. | 7 x 9 in | 35 illus. | August 2004

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Capital Flows and Crises


The implications of capital mobility for growth and stability are some of the most contentious and least understood contemporary issues in economics. In this book, Barry Eichengreen discusses historical, theoretical, empirical, and policy aspects of the effects, both positive and negative, of capital flows. He focuses on the connections between capital flows and crises as well as on those between capital flows and growth.Eichengreen argues that international financial liberalization, like other forms of economic liberalization, can positively affect the efficiency of resource allocation and the rate of economic growth. But analyses of both recent and historical experience also show an undeniable association between capital mobility and crises, especially when domestic institutions are weak and the harmonization of capital account liberalization and other policy reforms is inadequate. In his conclusion, Eichengreen makes suggestions for policy design to maximize the benefits of international financial liberalization while minimizing the risks of financial instability.

About the Author

Barry Eichengreen is George C. Pardee and Helen N. Pardee Professor of Economics and Political Science at the University of California, Berkeley. He is the author of Capital Flows and Crises (MIT Press, 2002) and other books.


“"Recent research in the new comparative economic history is dramatically changing our understanding of the global economy. Only by looking at the evolution of markets, technology, institutions, and policies in a comparative perspective can we fully comprehend the forces behind the most important economic phenomenon of the last 200 years: the great divergence between the economies of the rich core and the poor periphery. In a pathbreaking book that is essential reading for students of world economic history, Jeffrey Williamson presents a new account of the less developed world from 1820 to 1940 and shows how the two revolutions that enriched the core -- industrialization and globalization -- also profoundly shaped the course of events on the periphery."--Alan M. Taylor, Professor of Economics and Chancellor's Fellow, University of California, Davis”
“This collection is a tour de force of applied economic history. Barry Eichengreen's theoretically informed essays on the causes and consequences of past crises set up his useful advice on managing those of the present.”
Kenneth Oye, Center for International Studies and Department of Political Science, Massachusetts Institute of Technology
“Research on crises has exploded in recent years, and Eichengreen has been in the lead. This volume brings together the best of his recent writings on the subject.”
Alan M. Taylor, Professor of Economics and Chancellor's Fellow, University of California, Davis