THE ECONOMIC GOVERNMENT OF THE WORLD

An esteemed academic unravels 100 years of economic history and its social consequences.

This is a dauntingly long, detailed, meticulously researched book, and it has the feel of a textbook for advanced students. Daunton, emeritus professor of economic history at Cambridge, has a massive story to tell, tracing the development of the institutions that have managed the global economy from the London Economic Conference of 1933 to the present day. Stability has always been the goal of economists and technocrats, and for a decade after the London Conference, it was largely provided by Britain, with the pound being the dominant currency. This changed with the rise of the U.S., although Britain was still powerful enough in 1944 to sit down with the U.S. and design the Bretton Woods Agreement, which set out postwar arrangements. A series of agencies, such as the International Monetary Fund, the World Bank, and the World Trade Organization, were established, all underpinned by the dollar as the reserve currency. It was a stable environment for many years; however, to many developing countries, it looked like a party to which they had not been invited. By 2000, supply chains were becoming globally integrated, and capital was crossing borders with few restrictions. Daunton tracks the financial crises of the past few decades and acknowledges that globalization, while increasing the wealth of the wealthy, had also created a well of discontent and a sense that the old methods were no longer working. The emergence of China and the Eurozone also spelled the end of American economic hegemony. Daunton would like to see new thinking to tackle global issues like climate change and income inequality, but he does not know how the story might end. A more solid conclusion from a 1,000-page book would have been welcome, but perhaps uncertainty is a feature of the subject.

Daunton tackles an endlessly complex subject with authority and fairness.