Trade And Payments Theory In A Financialized Ec...

In the past, however, international payments were mainly carried out by firms, merchants, banks and governments, and mainly took the form of wholesale transactions by large players in global trade and financial markets. The banks of Amsterdam and Hamburg, for example, performed key central bank functions as early as the beginning of the 17th century, and were created to provide giro deposits to merchants as an efficient and stable means of payment.[18]

Trade and Payments Theory in a Financialized Ec...

The available evidence therefore suggests that transaction and switching costs are much smaller in the case of retail consumer payments than they are for traditional currencies used for wholesale cross-border trade and finance. There is little reason to believe that such network effects would be less powerful for global networks, possibly making international currency competition a much more dynamic contest in the future.

The second segment of the module will trace the historical development, structure, and function of the global political economy. The theoretical framework will include a brief introduction to the national income accounting and the balance of payments, the determination of exchange rates, and different exchange rate regimes. You'll employ this theory to better understand the historical evolution of the International Monetary System and the role of the International Financial Institutions in the global political economy. 041b061a72