Central Banks and Gold
How Tokyo, London, and New York Shaped the Modern World
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, as Japan, Great Britain, and the United States adopted deflation policies, the results of cooperation were realized 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.
Mark Metzler is Professor of History at the University of Texas at Austin. He is the author of Capital as Will and Imagination: Schumpeter's Guide to the Postwar Japanese Miracle and coauthor of Central Banks and Gold: How Tokyo, London, and New York Shaped the Modern World, both from Cornell, and author of Lever of Empire: The International Gold Standard and the Crisis of Liberalism in Prewar Japan.
Capital as Will and Imagination
Schumpeter's Guide to the Postwar Japanese Miracle
Joseph Schumpeter is not thought of as a theorist of credit-supercharged high-speed growth, but that is what he became in postwar Japan. This new view helps also to explain Japan's bubble, and the global bubbles that have followed it.