The Euromarket and the origins of the financial globalisation, 1957~1973
The late twentieth century witnessed the re-emergence of global finance that transcended nation-states. The manifestation of ‘capital’ in waves of globalisation was the transnational network of finance that encouraged cross-border capital movements. While the increased interdependence of domestic financial market challenged economic ‘sovereignty’ of national governments, they also sought to capitalise the resurrection of finance. Simultaneously, the globalisation of finance accompanied the increased role of international organisations such as the Bank for International Settlements and the rise of market participants in setting rules and standards concerning the operations of financial activities – the governance of global finance. And this system eroded the ‘embedded liberalism’ of the Bretton Woods system, a compromise to retain the advantages of the free market system and grant autonomy to national governments for welfare state domestic policies.
The Euromarket locates at the intersection of these multi-faceted features of the global finance during the Bretton Woods system. The offshore market for U.S. dollars in different maturities whose emergence has been regarded ‘a quirk of history’ is inextricably linked with various public and private actors, national governments, and international organisations. It was a by-product of the U.S. Regulation Q, a government control on capital flows, and the Cold War rivalry between the U.S. and the Soviet Union, from which innovative bankers exploited new business opportunities. Also, the misnomer ‘Eurodollar’ already indicates its transnational features. From this market, the City of London resurrected as the international financial centre in the 1960s. International bankers even from Communist countries introduced financial products in various maturities of Eurodollars which brought about the spatial and temporal transformation in the world of finance. The market for offshore finance and the integration of less-developed countries in the transnational network of finance that the Euromarket came to establish were reinforced by the Asian Dollar Market in 1969 and the recycling of petrodollars by international bankers after the oil crisis of 1973. Despite continued concerns about its destabilising effect on domestic monetary policy and speculation and corresponding efforts by monetary authorities to contain them, the new market led and symbolised the globalisation of finance, not to mention the destabilisation of the Bretton Woods system.
The existing scholarship on the Euromarket has paid attention to the City of London and the British government and international organisations. It also focuses on the competition among British and European banks against the so-called ‘American invasion’ rather than collaboration among international bankers in forging the global market. In consideration of transnational features of the Euromarket, this session aims to foster a dialogue which examines the early history of it under the Bretton Woods system from 1957 to 1973 from a global perspective. It discusses how the nascent market interacted with various market participants within and beyond nation-states, and the centre and periphery in the world economy. In doing so, this session attempts to shed light on broader questions regarding the origins of the globalisation of finance in the late 20th century – the making and remaking of economic sovereignty, the emergence of transnational financial community, and the role of non-Western countries in forging the wave of financial globalisation.
Organisers welcome participants and encourage graduate students and early career researchers to submit an abstract of maximum 500 words before 31 October 2017 to email@example.com . Authors will be notified of paper acceptance before the end of the year.
- Martin Daunton, University of Cambridge, firstname.lastname@example.org,
- Youssef Cassis, European University Institute, email@example.com,
- Edoardo Altamura, University of Geneva, firstname.lastname@example.org,
- Seung Woo Kim, University of Cambridge, email@example.com,
- Kazuhiko Yago, Waseda University, firstname.lastname@example.org
- Edoardo Altamura, University of Geneva, email@example.com
- Ioan Balaban, European University Institute, Ioan.Balaban@eui.eu
- Seung Woo Kim, University of Cambridge, firstname.lastname@example.org
- Martin Daunton, University of Cambridge, email@example.com
- Youssef Cassis, European University Institute, firstname.lastname@example.org