Is Globalization Today Really Different than Globalization a Hunderd Years Ago?

76 Pages Posted: 4 Aug 1999  

Michael D. Bordo

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

Barry Eichengreen

University of California, Berkeley; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Douglas A. Irwin

Dartmouth College - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: June 1999

Abstract

This paper pursues the comparison of economic integration today and pre 1914 for trade as well as finance, primarily for the United States but also with reference to the wider world. We establish the outlines of international integration a century ago and analyze the institutional and informational impediments that prevented the late nineteenth century world from achieving the same degree of integration as today. We conclude that the world today is different: commercial and financial integration before World War I was more limited. Given that integration today is even more pervasive than a hundred years ago, it is surprising that trade tensions and financial instability have not been worse in recent years. In the conclusion we point to the institutional innovations that have taken place in the past century as an explanation. This in turn suggests the way forward for national governments and multilaterals.

Suggested Citation

Bordo, Michael D. and Eichengreen, Barry and Irwin, Douglas A., Is Globalization Today Really Different than Globalization a Hunderd Years Ago? (June 1999). NBER Working Paper No. w7195. Available at SSRN: https://ssrn.com/abstract=171076

Michael D. Bordo (Contact Author)

Harvard University - Department of Economics ( email )

Littauer Center
Cambridge, MA 02138
United States

National Bureau of Economic Research (NBER) ( email )

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Barry Eichengreen

University of California, Berkeley ( email )

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Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER)

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United States

Centre for Economic Policy Research (CEPR)

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Douglas A. Irwin

Dartmouth College - Department of Economics ( email )

6106 Rockefeller Hall
Hanover, NH 03755
United States
603-646-2942 (Phone)
603-646-2122 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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