Central Bank Cooperation at the Bank for International Settlements, 1930–1973

Studies in Macroeconomic History

by Gianni Toniolo, Piet Clement (Assistant)

This book covers the history of the Bank for International Settlements (BIS), the first-born among the international economic institutions, from its founding in Basel in 1930 to the end of the Bretton Woods system in 1973. The first chapters explore the foundation of the BIS, its role in the financial crisis of 1931, the London economic conference of 1933, and in following years when central bank cooperation was mostly reduced to technical matters. Considerable attention is devoted to the much criticized activity of the BIS during World War II. The book then deals with the intensive central bank cooperation from the recreation of Europe's multilateral payments in the 1950s and for the support of the Bretton Woods system in the 1960s. The last chapter is devoted to the involvement of central banks in the first timid steps towards European monetary unification and to the eurodollar market.

Genres: Economics, History

752 pages, Hardcover

First published May 16, 2005

Reviews

[Wej · Rating 5 out of 5]

Admittedly, I have not managed to go through the whole book. I picked it up to understand the reason for establishing the BIS and the political conditions that led to it. The first two chapters did a great job in painting the picture of the international monetary system in the early 20th century and then the events leading to the founding of the BIS. This organisation was established to facilitate the payment of war reparations, and to make this process financial rather than political (through the issuance of bonds). The description of the ways in which major powers of the era were coming up with solutions was very enlightening. It was interesting to read about the impact of Hjalmar Schacht on the shape of the BIS and his insistence on making it a funding body to rebuild the German economy.
The rest of the book goes into detail about the functioning of the BIS till the end of Bretton Woods, including the infamous takeover of Czechoslovak gold by the Reichsbank. The most recent chapter describes the growing unification of Europe and the creation of the Eurodollar market.
Apparently the BIS archive is available to historians only after thirty years so that’s why more recent events were not described. In sum, a great book for topic enthusiasts but probably too dense for a casual reader.