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Chinese networks and tariff evasion

In this paper we combine the tariff evasion analysis of Fisman and Wei (2004) with Rauch and Trindade’s (2002) study of Chinese trade networks. Chinese networks are known to act as trade catalysts by enforcing contracts and providing market information. As tariff evasion occurs outside the law, market information is scant and formal institutions inexistent, rendering networks the...

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Français, English / 09/08/2011

The Federal Reserve, the Bank of England, and the rise of the dollar as an international currency, 1914-1939

This paper provides new evidence on the rise of the dollar as an international currency, focusing on its role in the conduct of trade and the provision of trade credit. We show that the shift to the dollar occurred much earlier than conventionally supposed: during and immediately after World War I. Not just market forces but also policy support – the Fed in its role as market maker...

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Français, English / 09/08/2011

Hamlet without the Prince of Denmark: relationship banking and conditionality lending in the London Market For Foreign Government Debt, 1815 - 1913

This paper offers a theory of conditionality lending in 19th century international capital markets. We argue that ownership of reputation signals by prestigious banks rendered them able and willing to monitor government borrowing. Monitoring was a source of rent, and it led bankers to support countries facing liquidity crises in a manner similar to modern descriptions of “...

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Français, English / 08/08/2011

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