Maurice Obstfeld is Class of 1958 Professor of Economics at the University of California, Berkeley. He is also Director of the Center for International and Development Economics Research. A prolific writer, he has contributed many articles and books to the fields of international economics and international finance.
He has recently dealt with the issue of the US current account deficit. According to his latest research, the issue is far more severe than is usually suspected. Indeed, his revised estimates suggest that
"the current conjoncture more closely parallels the early 1970s, when the Bretton Woods system collapsed finally."
Alan Taylor is Professor of Economics and Director, Center for the Evolution of the Global economy, University of California, Davis. His research deals with global finance and the global economy:
"These parallels raise a number of questions about the evolution of the global economy in the 19th century, its collapse in 1914, and the rebirth of globalization at the end of the 20th century. With Maurice Obstfeld (University of California, Berkeley), I have explored these events systematically, which resulted in our new economic history of global capital markets and the attendant political-economy problems. We found that economic policymaking has, throughout, been characterized by a fundamental macroeconomic policy trilemma that all governments face. That is, it is not possible for a government simultaneously to peg the exchange rate, keep an open capital market, and enjoy monetary policy autonomy."
About the book:
This book presents an economic history of international capital mobility in the modern era. It blends narrative and quantitative methods and connects economic outcomes to the underlying political economy of international macroeconomics.
The volume demonstrates that
the recent globalization can be seen, in part, as the resumption of a
liberal world order that had previously been established in the years
1880-1914, but also points out that much is different in terms of its
causes and consequences.
What they say about the book:
"Overall, Global Capital Markets is an excellent study of the evolution of international capital markets since the classical gold standard period. This book is a must read for economists and economic historians with an interest in international economics." EH.NET
"The rise, fall and rise again
of financial globalization between the nineteenth century and the 1990s is a
topic of burning interest to economists and economic historians alike. This
invaluable volume is the culmination of nearly a decade of path-breaking
research by Maurice Obstfeld and Alan M. Taylor into international capital
mobility and its macroeconomic significance over the long run. No one who
wishes to have a historically informed understanding of global financial
markets — and the crises which afflict them — can afford to ignore it." Niall Ferguson, New York University
"In Global Capital Markets, Maurice Obstfeld and Alan Taylor present a comprehensive and pragmatic approach to studying the costs and benefits of integration into the global financial system. They start by drawing on the relevant theory and then examine an enormous range of evidence, starting from the gold standard system, through the most recent econometric studies. And they reach thoroughly sensible, nuanced conclusions, namely — well, you should really read the book to find out." Stanley Fischer, Vice Chairman, Citigroup; former Deputy Managing Director, International Monetary Fund
"The costs and benefits of international capital flows have been the focus of much of the controversy over globalization. Obstfeld and Taylor provide a compelling and comprehensive study of the economics and history of capital market integration, that makes very clear the great benefits of integration as well as explaining clearly the circumstances in which the costs arise. They give us new data and new insights, and above all a new analytical framework. Their careful and convincing analysis should put an end to a great deal of fruitless polemic." Harold James, Princeton University
"This is the place to send your students to find out about international capital flows. Obstfeld and Taylor use economic theory to understand history and, more importantly, history to comprehend and calibrate theory." Peter Temin, Massachusetts Institute of Technology
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