) global economic integration took another major leap forward during the period between the end of the napoleonic wars in 1815 and the beginning of world war i. international trade again expanded significantly as did cross - border flows of financial capital and labor. once again, new technologies played an important role in facilitating integration : transport costs plunged as steam power replaced the sail and railroads replaced the wagon or the barge, and an ambitious public works project, the opening of the suez canal, significantly reduced travel times between europe and asia. communication costs likewise fell as the telegraph came into common use. one observer in the late 1860s described the just completed trans - atlantic telegraph cable as having " annihilated both space and time in the transmission of intelligence " ( standage, 1998, p. 90 ). trade expanded the variety of available goods, both in europe and elsewhere, and as the trade monopolies of earlier times were replaced by intense competition, prices converged globally for a wide range of commodities, including spices, wheat, cotton, pig iron, and jute ( findlay and o'rourke, 2002 ). the structure of trade during the post - napoleonic period followed a " core - periphery " pattern. capitalrich western european countries, particularly britain, were the center, or core, of the trading system and the international monetary system. countries in which natural resources and land were relatively abundant formed the periphery. manufactured goods, financial capital, and labor tended to flow from the core to the periphery, with natural resources and agricultural products flowing from the periphery to the core. the composition of the core and the periphery remained fairly stable, with one important exception being the united states, which, over the course of the nineteenth century, made the transition from the periphery to the core. the share of manufactured goods in u. s. exports rose from less than 30 percent in 1840 to 60 percent in 1913, and the united states became a net exporter of financial capital beginning in the late 1890s. 1 for the most part, government policies during this era fostered openness to trade, capital mobility, and migration. britain unilaterally repealed its tariffs on grains ( the so - called corn laws ) in 1846, and a series of bilateral treaties subsequently dismantled many barriers to trade in europe. a growing appreciation for the principle of comparative advantage, as forcefully articulated by adam smith and david ricardo, may have made governments more receptive to the view that international trade is not a zero - sum game but can be beneficial to

jerome h powell : brief remarks on the us economy speech by mr jerome h powell, chairman of the board of governors of the federal reserve system, at rhode island business leaders day, washington dc, 27 september 2018. * * * good afternoon. thank you, senator reed, for the kind words and the opportunity to be a part of the annual rhode island business leaders day. and thank you, all, for sticking with the program for the last speaker of the day. the federal open market committee, the body within the federal reserve that sets monetary policy, just concluded a meeting yesterday. i plan to talk briefly about how my colleagues and i see the economy evolving and our role in keeping it healthy. importantly, i want to hear from you. i very much appreciate your views, as business people, of economic conditions where you live and work. and, of course, i will be happy to respond to questions. our economy is strong. growth is running at a healthy clip. unemployment is low, the number of people working is rising steadily, and wages are up. inflation is low and stable. all of these developments are very good signs. of course, that is not to say that everything is perfect. the benefits of this strong economy have not reached all americans. many of our countrya€™s economic challenges are beyond the scope of the fed, but we are doing all we can to keep the economy strong and moving forward. that is the best way we can promote an environment in which every american has the opportunity to succeed. each time we meet, we face the same question : how can we set monetary policy to best support job growth and low, steady inflation? for many years, this question called for very low interest rates to help an economy that had been damaged by the deep financial crisis that gripped the world 10 years ago. as the economy has steadily gained strength, the fed has been gradually returning interest rates closer to the levels that are normal in a healthy economy. we took another step on that path yesterday, with a quarter - point increase in short - term interest rates. these rates remain low, and my colleagues and i believe that this gradual return to normal is helping to sustain this strong economy for the longer - run benefit of all americans. as i mentioned, 10 years have now passed since the depths of the financial crisis a painful part of our history that cost many americans their jobs, their homes, and, for some, their hopes and dreams. in addition to holding interest