The Fruitful Career of Benjamin Graham

           In numerous respects, Benjamin Graham transformed the investment profession. For decades a superstitious trade practiced by mystics believing the strangest of strategies would bestow them with riches, managing money has become a mathematical profession perhaps excessively at odds with human irrationality. It was Graham, more than anyone else, who made investing and security analysis systematic.

Eastern Bloc Hard Currency Shops

           During their last two decades under socialism, the economies of Eastern Europe struggled with current account deficits and limited access to credit with which to finance them. In most of these countries, this spawned efforts to acquire foreign ‘hard’ currency whenever it entered their borders, undertakings that involved a lot of creative thinking and government

China’s Currency Revolution

           Over the past two thousand years, commerce has transitioned from using metal coins as the principal medium of exchange to using paper banknotes. Paper currencies started off as peculiar local institutions, often conceived as a type of debt obligation, and served as stand-ins for actual coins. Today, they have become the universal norm and are

The 19th Century Eurozone

           In 1992, the Maastricht Treaty committed the European Union to adopting a single currency, the euro. The most immediate precursor to the euro in existence then was the Exchange Rate Mechanism (ERM) which pegged several European currencies to each other, creating a system of fixed exchange rates. The ERM was established in 1979 and disintegrated

New York’s Streetside Exchange

           Due to its age and familiarity, the New York Stock Exchange is often regarded as the city’s most important trading institution and its only stock exchange of historic significance. Whatever innovations it brought to the business of securities trading, the NASDAQ is a youngster by comparison, having been established in 1971. However, for a century,

Albania’s Pyramid Scheme Nightmare

           For many ex-socialist states, the rapid transition to a free-market economy was a calamity. In contrast to slower and more successful transformations, like that of China, the nations of Eastern Europe inaugurated their market economies with deep depressions and high inflation. Some of the blame for the disastrous ‘shock therapy’ that characterized the transformation of

Atlantic Charter, GATT, and the WTO

       Even before the 20th century, punitive restrictions on trade were quickly being lifted. In Europe, tariff barriers had receded significantly since the mid-1800s. However, the trend towards free trade became global and more permanent with the creation of new international organizations after the Second World War. These institutions were born out of the economic and

European Coal and Steel Community

            Whatever its evolution beyond a mere free trade zone, the European Union is nonetheless the product of decades of trade liberalization, today uniting 500 million people in a common market. The trade liberalization seen in 19th century Europe, though it sharply reduced barriers to trade, did not go nearly as far. While the EU is

Revenue Act of 1913

           The roots of globalization, which has defined the world economy for at least the last 30 years, extend far back. Along with improvements in logistics and the spread of capitalism, the recipe for globalization called for reductions in tariffs and other trade barriers. Already in the mid 19th century, tariff barriers were coming down across

Cobden-Chevalier Treaty

           As the Industrial Revolution spread throughout Europe and beyond in the 19th century, so did new approaches to economic thinking. Protectionism was slowly but steadily going out of vogue, and free trade, or at least liberalized trade, was making headway. In Britain, the repeal of the Corn Laws in the 1840s was a major turning

Corn Laws and Free Trade

            Free trade is often associated with late-20th century globalization. The creation of large continental trade associations like NAFTA, Mercosur, and the EU lead many to consider trade liberalization to be a recent phenomenon. The truth is that free trade, and the economic rationale behind it, had its birth in the 19th century with the decline

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