Central banks and gold
Subtitle: how Tokyo, London, and New York shaped the modern world
By: Simon James Bytheway and Mark Metzler
Contributors: Metzler, Mark, 1957- author
Series: Cornell studies in money; Cornell studies in money
Publisher: Cornell University Press
Published: 2016
Language: eng
Number of pages: 240
ISBN-13: 9781501704949
Subjects: Money supply; History; Gold standard; Central Banks and banking; International Banks and banking
Description: In recent decades, Tokyo, London, and New York have been the sites of credit bubbles of historically unprecedented magnitude. Central bankers have enjoyed almost unparalleled power and autonomy. They have cooperated to construct and preserve towering structures of debt, reshaping relations of power and ownership around the world. In Central Banks and Gold, Simon James Bytheway and Mark Metzler explore how this financialized form of globalism took shape a century ago, when Tokyo joined London and New York as a major financial center. As revealed here for the first time, close cooperation between central banks began along an unexpected axis, between London and Tokyo, around the year 1900, with the Bank of England's secret use of large Bank of Japan funds to intervene in the London markets. Central-bank cooperation became multilateral during World War I--the moment when Japan first emerged as a creditor country. In 1919 and 1920, Japan, Great Britain, and the United States adopted deflation policies, in the world's first globally coordinated program of monetary policy. It was also in 1920 that Wall Street bankers moved to establish closer ties with Tokyo. Bytheway and Metzler tell the story of how the first age of central-bank power and pride ended in the disaster of the Great Depression, when a rush for gold brought the system crashing down. In all of this, we see also the quiet but surprisingly central place of Japan. We see it again today, in the way that Japan has unwillingly led the world into a new age of post-bubble economics.
Notes: Includes bibliographical references (pages 213-232) and index.
Table of contents: title: The beginnings of central bank cooperation: Tokyo and London, 1895-1914; title: World war and globalization; title: Japan emerges as an international creditor, 1915-1918; title: Postwar alignment; title: Wall street discovers Japan, Spring 1920; title: Putting the program into action, 1920-1928; title: Making a market: London and gold in the 1920s; title: The rush for gold.