This text focuses on the international banking revolution of the 1960s and provides a fresh historical perspective on the foundations of the subsequent financial globalization. The contributors address four main issues: the revival of London as a world financial centre; the emergence of Euro-banking as a new frontier of growth for credit institutions; the competitive challenge brought home by American banks to their European counterparts; and the strategic response by British and Continental banks.
"The signs and instruments of power are no longer armed legions or raw materials or capital... The wealth we seek does not lie in the earth or in numbers of men or in machines, but in the human spirit. And particularly in the ability of men to think and to create.' -- Jean-Jacques Servan-Schreiber in his international bestseller, The American Challenge. The American Challenge was 50 years ahead of its time in its appraisal of Europe, industrialization, the global economy and digital future, and the sclerosis of French politics. A new generation of French and Europeans can now rediscover it and take measure of all that still remains to be accomplished to bring to fruition the post-war European dream. "The world we live in is very much the world Servan-Schreiber imagined,' Professor Paul Krugman writes in his preface to this ebook edition, further adding that "JJSS was an incredibly insightful prophet.' With its radically new economic and political vision, The American Challenge was a bestseller when first published in 1967. Selling over 2 million copies in France and more than 10 million throughout the world, the book was translated and published in 16 languages and 26 countries. This first ebook edition provides the original edition's text in its entirety. Available from all major online retailers, it includes a new preface by New York Times op-ed contributor and Nobel Prize winner in Economics, Paul Krugman, acclaiming a book that "marked a whole generation.' Praise for "The American Challenge": "The American Challenge, was not only a game changer for European–American relations, it also provided a new and innovative conception of national competitiveness. The book was a true catalyst in the creation of the World Economic Forum.'- Klaus Schwab, Founder and Chairman, The World Economic Forum "Jean-Jacques Servan-Schreiber first put forth his bold vision of accelerating American prosperity back in 1967. While this outcome seemed inevitable at the time, half a century later we have fallen far short of that future. The reissue of his landmark book serves as a clarion call for our stagnant civilization to find a way back to the optimistic future of the 1960s.' - Peter Thiel, Co-Founder of Paypal, Managing Partner of the Founders' Fund "Jean-Jacques Servan-Schreiber was a true humanist. He understood the importance of the sovereignty for the people in the wake of European colonialism, as well as the potential in federating resources in an increasingly multipolar world, exemplified by his support of the European integration. He also foresaw the possibilities and challenges of modern technology.' - Nicolas Berggruen, President, Berggruen Institute on Governance "The American Challenge is an excellent, vigorous and modern book – that is to say, one free of many of the usual shortcomings and repetitiveness of commonplace thinking.' - Valéry Giscard d'Estaing, President of France, 1974-1981 "The American Challenge is at the top of the best seller lists. For a tome rich in statistics and dealing with the world of economic and corporate development, computers, satellites and the rivalries of industrial power blocs, this is an astonishing success. If Marx had done as well with "Das Kapital', we might all be waving red flags and eating caviar.' - New York Times, May 19, 1968
The banking and financial sector has expanded dramatically in the last forty years, and the consequences of this accelerated growth have been felt by people around the world. European Banks and the Rise of International Finance examines the historical origins of the financialised world we live in by analysing the transformations in world finance which occurred in the decade from the first oil crisis of 1973, until the debt crisis of 1982. This a crucial and formative decade for understanding the modern financial landscape, but it is still mostly unexplored in economic and financial history. The availability of new archival evidence has allowed for the re-examination of issues such as the progressive privatisation of international financial flows to Less Developed Countries, especially in Latin America and South-East Asia, and its impact on the expansion of the European banking sector, and for the development of an invaluable financial and political history. This book is well suited for those interested in monetary economics and economic history, as well as those studying international political economy, banking history and Financial history.
This timely book provides in-depth analytical comparison of the nineteenth century evolution of the American single market with corresponding political, economic, and social developments in post-WWII European efforts to create a single European market. Building the regulatory framework needed for successful adoption of an integrated single market across diverse political units represents one of the most important issues in comparative political economy. What accounts for the political success or failure in creating integrated markets in their respective territories? When social discontent threatens market integration with populist backlash, what must be done to create political support and greater legitimacy? Single Markets focuses on the creation of integrated economies, in which the United States and European Union experienced sharply contested ideas about the operation of their respective markets, conflict over the allocation of institutional authority, and pressure from competing political, economic, and social forces over the role and consequences of increased competition. Drawing upon four case studies, the book highlights the contestation surrounding the US and EUs efforts to create common currencies, expand their borders and territories, and deal with the pressures of populist parties, regional interests and varied fiscal and economic challenges. Theoretically, the book draws on work in European integration and American Political Development (APD) to illustrate that the consolidation of markets in the US and EU took place in conjunction with the expansion of state regulatory power and pressure for democratic reform. Single Markets situates the consolidation of single markets in the US and EU in a broader comparative context that draws on research in economics, public administration, political science, law, and history.
Volume II considers the history of the European Union from an inside-out perspective, focusing on the internal developments that shaped the European integration process. Taking an innovative, thematic approach, this volume will be of interest to students and researchers of European integration.
The financial crisis of 2008 aroused widespread interest in banking and financial history among policy makers, academics, journalists, and even bankers, in addition to the wider public. References in the press to the term 'Great Depression' spiked after the failure of Lehman Brothers in November 2008, with similar surges in references to 'economic history' at various times during the financial turbulence. In an attempt to better understand the magnitude of the shock, there was a demand for historical parallels. How severe was the financial crash? Was it, in fact, the most severe financial crisis since the Great Depression? Were its causes unique or part of a well-known historical pattern? And have financial crises always led to severe depressions? Historical reflection on the recent financial crises and the long-term development of the financial system go hand in hand. This volume provides the material for such a reflection by presenting the state of the art in banking and financial history. Nineteen highly regarded experts present chapters on the economic and financial side of banking and financial activities, primarily though not solely in advanced economies, in a long-term comparative perspective. In addition to paying attention to general issues, not least those related to theoretical and methodological aspects of the discipline, the volume approaches the banking and financial world from four distinct but interrelated angles: financial institutions, financial markets, financial regulation, and financial crises.
Since the 1960s, scholars and other commentators have frequently announced the imminent decline of American financial power: excessive speculation and debt are believed to have undermined the long-term basis of a stable US-led financial order. But the American financial system has repeatedly shown itself to be more resilient than such assessments suggest. This book argues that there is considerable coherence to American finance: far from being a house of cards, it is a proper edifice, built on institutional foundations with points of both strength and weakness. The book examines these foundations through a historical account of their construction: it shows how institutional transformations in the late nineteenth century created a distinctive infrastructure of financial relations and proceeds to trace the contradiction-ridden expansion of this system during the twentieth century as well as its institutional consolidation during the neoliberal era. It concludes with a discussion of the forces of instability that hit at the start of the twenty-first century.
During the twentieth century the financial sector became possibly the most regulated area of the economy in many advanced and developing countries. The interwar years represented the defining moment for the escalation of governments' intervention, turning the State into the core of financial systems in its capacity of regulator, supervisor or owner. The essays in this collection shed light on different aspects of the experience of financial regulation, ownership and deregulation in Europe and the USA from a secular historical perspective. The volume's chapters explore how the political economy of finance changed in the nineteenth and twentieth centuries and how such changes were related to shifting attitudes towards globalization. They also investigate how regulation responded to governance problems of financial intermediaries and markets, and how different legal frameworks and institutional architectures influenced such response. The collection engages with a set of issues as diverse as they are interrelated across countries and over time: the regulatory attitude of British authorities toward the banking system and the stock exchange market in the nineteenth and twentieth centuries; the comparative evolution of bankruptcy laws and procedures; the link between state, regulation and governance in the evolution of the US and French financial systems; the emergence of banking regulation and supervision by central banks; the regulation and supervision of international financial markets since the 1950s; and the connection between deregulation and banking crises at the end of the past century. Taken as a whole, the chapters offer an intriguing insight into the differing ways western countries approached and responded to the challenges of the international financial system, and the legacy of this on the modern world. In so doing the volume holds up to historical scrutiny the debate as to whether overt state regulation of financial markets always has a negative affect on economic growth, or whether it can be an essential tool for developing nations in their efforts to expand their economies.
In a lively critique of how international and comparative political economy misjudge the relationship between global markets and states, this book demonstrates the central place of the American state in today's world of globalized finance. The contributors set aside traditional emphases on military intervention, looking instead to economics.
