A History of International Monetary Diplomacy, 1867 to the Present
The Rise of the Guardian State and Economic Sovereignty in a Globalizing World
This book is about how the rise of democracy has transformed economics over the past 150 years. As voting was expanded to the masses in the late 19th century, political leaders faced emergent pressures to deliver prosperity to their newly enfranchised populations. This led to the rise of the guardian state: a state whose prime directive was to protect economic growth and employment. Domestic economic goals now became sacrosanct, and if that meant a failure on the international stage to construct solutions to problems in monetary relations, so be it.
The book traces the history of international monetary diplomacy during this long period to show how the guardian state has manifested itself, and how it has shaped the course of international monetary relations. Each of the most important international monetary conferences in history is scrutinized with respect to how nations sought to protect the prosperity within their national economies. The historical narratives give a bird’s-eye view into how domestic political priorities have intruded on and shaped economic relations among nations.
The book clearly demonstrates the advantages of an interdisciplinary understanding of how politics shapes economics. It will be invaluable reading for scholars and students of international economics, politics and economic history.
Table of Contents
Chapter 1. The Rise of the Guardian State and Structural Change in the Global Political Economy
Chapter 2. The 19th Century Conferences
Chapter 3. The Interwar Conferences: Genoa and London
Chapter 4. Mature Guardianship: Bretton Woods
Chapter 5. Guardianship Under Monetary Imperialism: The Smithsonian Conference
Chapter 6. Guardianship in the Monetary Feudalism of the Non-System: Monetary Imperialism Part Two at Plaza, Louvre, and Beyond
Chapter 7. Reflecting on a Century of Guardianship: Patterns and Implications
Giulio M. Gallarotti is Professor of Government and member of the Faculty of the College of the Environment–at Wesleyan University, USA. He is also Adjunct Professor of Political Science at Columbia University, USA, and was a Visiting Professor in the Department of Economic Theory at the University of Rome, Italy.
"International monetary relations have a powerful impact on world economics and politics, but they are poorly understood by most citizens – and even many analysts. In this detailed and provocative book, Giulio Gallarotti explains how the evolution of Western societies since the nineteenth century affected international monetary affairs. He shows how the growing importance of domestic social and political tensions led national governments to pursue their own goals – often at the expense of other countries. And he shows how governments were sometimes able to overcome their differences to arrive at more cooperative relations. A History of International Monetary Diplomacy, 1867 to the Present is a wide-ranging, comprehensive analysis of some of the most important economic and political developments in modern global capitalism. It will be essential reading for anyone interested in understanding where today’s international economy is coming from, and where it may be going."
- Jeffry Frieden, Harvard University, USA
"International finance is national as well as international and involves politics as much as economics. Giulio Gallarotti is the indispensable guide to these complex interactions. Here he shows how the rise of democratic politics over the last century and a half has re-shaped these political-economy dynamics in more contentious and volatile directions."
- Barry Eichengreen, University of California at Berkeley, USA
"The argument of this book is that the rise of mass democracy early in the 20th century forever changed international monetary diplomacy. After this juncture, the major powers resisted monetary cooperation whenever it conflicted with full employment. Gallarotti analyzes how governments navigated the constraints of the classic macroeconomic trilemma in a series of engaging case studies that run from the International Monetary Conference of 1867, through the Louvre and Plaza negotiations in the 1980s, and beyond."
- Lawrence Broz, University of California at San Diego, USA