This session covers Lecture 14: Money and the State: International and the Robert Mundell reading, which is a revised version of his 1999 Nobel Prize speech on the international monetary history of the 20th century. Lecture 14 Notes Mundell Study Questions Mundell divides the 20th century into three parts. He views the 19th-century gold standard …

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This session covers Lecture 15: Banks and Global Liquidity and Lecture 16: Foreign Exchange Lecture 15 Notes Lecture 16 Notes Lecture 15 uses the context of a 19th-century gold-standard world to introduce the Treynor model to foreign exchange markets. We flesh out the international dimension to what we covered in Lecture 9. FX dealers operate …

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This session covers Reading 8: The Dollar and World Liquidity: A Minority View, a 1966 article by Charles P. Kindleberger, Walter Despres, and Walter S. Salant, which originally appeared in The Economist. By viewing the United States as a bank to the rest of the world, Kindleberger tries to allay concerns about a U.S. balance-of-payments …

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This session covers Lecture 17: Direct and Indirect Finance and Lecture 18: Forwards and Futures. Lecture 17 Notes Lecture 18 Notes Lecture 17—starting with a simple description of "traditional" commercial banks—describes the evolution and emergence of shadow banking as the money market and capital market became intertwined through an iterative process of intermediation and disintermediation. …

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