EconomistAmericanEconomic HistorianJewish

Barry Eichengreen

Barry Eichengreen is a prominent American economist and economic historian known for his extensive research on international monetary and financial systems and financial crises.

1. Early life and education

Barry Eichengreen was born in 1952. His mother was Lucille Eichengreen, a Holocaust survivor and a notable author.

He pursued his higher education at Yale University in New Haven, Connecticut, after completing his undergraduate studies at UC Santa Cruz. He earned his Bachelor of Arts (A.B.) from the University of California, Santa Cruz, in 1974. Following this, he received multiple advanced degrees from Yale University: a Master of Arts (M.A.) in economics in 1976, an M.Phil. in economics in 1977, an M.A. in history in 1978, and finally his Doctor of Philosophy (Ph.D.) in economics in 1979.

2. Career

Barry Eichengreen's career has spanned significant academic appointments and influential roles in public and professional service, reflecting his profound impact on economic research and policy discourse.

2.1. Academic career

Eichengreen's academic career began with his tenure as an assistant and associate professor in the Department of Economics at Harvard University from 1980 to 1986. During this period, from 1981 to 1986, he also served as a faculty research fellow at the National Bureau of Economic Research (NBER). In 1986, he joined the University of California, Berkeley, as a professor, a position he held until 1994. Since 1986, he has maintained his affiliation with the NBER as a research associate. From 1994 to 1999, he was the John L. Simpson Professor of Economics and Professor of Political Science at the University of California, Berkeley. Since 1999, he has held the distinguished title of George C. Pardee and Helen N. Pardee Professor of Economics and Political Science at the same institution. Additionally, since 1984, he has been a research fellow at the Centre for Economic Policy Research in London.

2.2. Public and professional service

Beyond his academic endeavors, Eichengreen has engaged extensively in public and professional service. From 1997 to 1998, he served as a senior policy advisor to the International Monetary Fund (IMF), though he has since become a vocal critic of the institution. In 1997, he was inducted as a fellow of the American Academy of Arts and Sciences. He also presided over the Economic History Association from 2010 to 2011. Eichengreen has been a non-resident Senior Fellow at the Centre for International Governance Innovation and a regular contributor to Project Syndicate since 2003, sharing his economic insights with a global audience. He also convened the Bellagio Group from 2008 to 2020, fostering international dialogue on economic policy.

3. Research and Major Contributions

Barry Eichengreen's extensive research has deeply influenced the fields of economic history, international finance, and political economy. His work often draws historical parallels to illuminate contemporary economic challenges and policy debates.

3.1. Core research areas

Eichengreen's primary research interests systematically explore the history and operation of international monetary and financial systems. He has extensively investigated topics such as global imbalances, the causes and consequences of financial crises, and the economic underpinnings of populism. His expertise also encompasses currency wars, beggar-thy-neighbor policys, economic blocs, and the fallacy of composition in economic policy. Through his research, he aims to understand how economic grievances can contribute to political reactions in the modern era, examining the interplay between economic conditions and political outcomes.

3.2. Key theories and landmark works

His most acclaimed work is the book Golden Fetters: The Gold Standard and the Great Depression, 1919-1939, published by Oxford University Press in 1992. In this seminal work, Eichengreen argues that the inherent flaws and poor management of the international gold standard were the proximate cause of the Great Depression. As summarized by former Federal Reserve Chairman Ben Bernanke, Eichengreen's thesis posits that contractionary monetary policies in major countries in the late 1920s, transmitted globally by the gold standard, initiated a mild deflationary process. This escalated into a "scramble for gold" in 1931 due to banking and currency crises. Factors such as gold inflow sterilization by surplus countries (like the United States and France), substitution of gold for foreign exchange reserves, and bank runs led to sharp, unintended declines in national money supplies. These monetary contractions were strongly correlated with falling prices, output, and employment. Eichengreen contends that effective international cooperation, which could have allowed for worldwide monetary expansion despite gold standard constraints, was prevented by disputes over World War I reparations and war debts, as well as the insularity and inexperience of the Federal Reserve System. Consequently, individual countries could only escape the deflationary spiral by unilaterally abandoning the gold standard and re-establishing domestic monetary stability, a process that unfolded haltingly until France and other Gold Bloc countries finally departed from gold in 1936. Eichengreen's primary evidence supporting this view is the observation that countries that abandoned the gold standard earlier experienced quicker economic recoveries.

Other influential works include Global Imbalances and the Lessons of Bretton Woods (2006), which examines contemporary global imbalances through a historical lens, and Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System (2011), which analyzes the dollar's status as the world's dominant reserve currency. His book The Populist Temptation: Economic Grievance and Political Reaction in the Modern Era (2018) explores the economic roots of modern populism. In 2021, he published In Defense of Public Debt.

3.3. Analysis of contemporary economic issues

Eichengreen frequently applies his historical and economic insights to analyze modern economic challenges. For instance, his 1993 paper with Tamim Bayoumi, "Shocking Aspects of European Monetary Unification," argued that the European Union was less suited to be a single currency area than the United States. This diagnosis was seen as confirmed during the Eurozone Crisis of 2011, when external shocks severely impacted the currency union. He has also been a critic of international financial institutions like the International Monetary Fund, proposing reforms to improve their effectiveness in managing global financial stability. His work often highlights the uses and misuses of history in shaping economic policy, as detailed in his 2015 book, Hall of Mirrors: The Great Depression, The Great Recession, and the Uses-and Misuses-of History.

4. Publications

Barry Eichengreen has authored and co-authored numerous books and significant academic publications throughout his career.

  • Elusive Stability: Essays in the History of International Finance 1919-1939. Cambridge University Press, 1990
  • Golden Fetters: The Gold Standard and the Great Depression, 1919-1939. Oxford University Press, 1992
  • International Monetary Arrangements for the 21st Century. Brookings Institution Press, 1994. A Japanese translation, 21世紀の国際通貨制度--二つの選択International Monetary System for the 21st Century: Two ChoicesJapanese, was published by Iwanami Shoten in 1997.
  • Reconstructing Europe's Trade and Payments: The European Payments Union. University of Michigan Press, 1994
  • Globalizing Capital: A History of the International Monetary System. Princeton University Press, 1996; 2nd edition 2008. A Japanese translation, グローバル資本と国際通貨システムGlobal Capital and the International Monetary SystemJapanese, was published by Minerva Shobo in 1999.
  • European Monetary Unification: Theory, Practice, Analysis. The MIT Press, 1997
  • with José De Gregorio, Takatoshi Ito & Charles Wyplosz: An Independent and Accountable IMF. Centre for Economic Policy Research, 1999
  • Toward A New International Financial Architecture: A Practical Post-Asia Agenda. Institute for International Economics, 1999. A Japanese translation, 国際金融アーキテクチャーInternational Financial ArchitectureJapanese, was published by Toyo Keizai Inc. in 2003, supervised by Etsuko Katsu.
  • Financial Crises and What to Do About Them. Oxford University Press, 2002
  • with Erik Berglöf, Gérard Roland, Guido Tabellini & Charles Wyplosz: Built to Last: A Political Architecture for Europe. CEPR, 2003
  • Capital Flows and Crises. The MIT Press, 2004
  • Global Imbalances and the Lessons of Bretton Woods. The MIT Press, 2006. A Japanese translation, グローバル・インバランス--歴史からの教訓Global Imbalances: Lessons from HistoryJapanese, was published by Toyo Keizai Inc. in 2010.
  • The European Economy Since 1945: Co-ordinated Capitalism and Beyond. Princeton University Press, 2008
  • Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System, Oxford University Press, New York 2010. A Japanese translation, とてつもない特権--君臨する基軸通貨ドルの不安Exorbitant Privilege: The Instability of the Reigning Reserve Currency, the DollarJapanese, was published by Keiso Shobo in 2012, supervised by Yasuhiro Kohama.
  • with Dwight H. Perkins and Kwanho Shin: From Miracle to Maturity: The Growth of the Korean Economy, Harvard University Asia Center. 2012
  • Hall of Mirrors: The Great Depression, The Great Recession, and the Uses-and Misuses-of History, Oxford University Press, New York 2015
  • How Global Currencies Work: Past, Present, and Future 2017
  • The Populist Temptation: Economic Grievance and Political Reaction in the Modern Era, Oxford University Press, New York 2018
  • In Defense of Public Debt, Oxford University Press, New York 2021
  • Co-authored 中央銀行論Theory of Central BanksJapanese with Joseph Stiglitz and others, published by Doyosha in 2013.

5. Awards and honors

Barry Eichengreen has received several awards and honors recognizing his significant contributions to economics and education:

  • 2002**: Jonathan R. T. Hughes Excellence in Teaching Award from the Economic History Association.
  • 2004**: Distinguished Teaching Award from the Division of Social Sciences at the University of California, Berkeley.

6. Legacy and influence

Barry Eichengreen's work has left a profound and lasting impact on the fields of economic history, international finance, and public policy. His ability to synthesize historical patterns with contemporary economic challenges has made his scholarship highly relevant to both academics and policymakers. He is widely credited with reshaping the understanding of the Great Depression by highlighting the central role of the gold standard and policy choices, thereby influencing subsequent research on financial crises and global monetary arrangements.

His rigorous historical analysis often serves as a cautionary tale for modern policy decisions, particularly regarding international financial institutions and currency unions. Eichengreen's contributions to the study of global imbalances, the role of reserve currencies, and the economic drivers of populism continue to inform discussions on these critical issues. Through his prolific writings, teaching, and active participation in public discourse via platforms like Project Syndicate, Eichengreen has significantly influenced generations of scholars and policymakers, solidifying his legacy as a leading voice in global economics.