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sants Susan Collins and Peter Henry, for helpful comments and discussions. We thank
BibTeX
@MISC{Prasad_santssusan,
author = {Eswar Prasad and Raghuram Rajan and Arvind Subramanian and Manzoor Gill and Ioannis Tokatlidis and Junko Sekine},
title = {sants Susan Collins and Peter Henry, for helpful comments and discussions. We thank},
year = {}
}
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Abstract
IN ONE OF HIS most memorable and widely quoted passages, John Maynard Keynes extolled the virtues not only of trade integration but also of financial integration when he wrote, in 1920, of the fabled Englishman who could “adventure his wealth in... new enterprises of any quarter of the world, and share, without exertion or even trouble, in their prospective fruits and advantages.”1 Consistency was, of course, not a Keynesian virtue, and in 1933, in one of his less quoted passages, Keynes’s musings on globalization turned more melancholy, even skeptical: “I sympathize with those who would minimize, rather than with those who would maximize, economic entanglement among nations. Ideas, knowledge, science, hospitality, travel—these are the things which should of their nature be international. But let goods be homespun whenever it is reasonably and conveniently pos-sible.... ” He reserved his deepest skepticism for financial globalization, warning, “and, above all, let finance be primarily national.”2 Which Keynes was right? the Keynes of 1920 or the Keynes of 1933?
