The globally connected Western Ukrainian village

Abstract

What analytical framework do we need in order to study villages shaped by intensive and long-lasting migration processes? The author tackles this question by scrutinizing the history of a Western Ukrainian village from the late nineteenth to the early twentieth century in a case study. Migrants and non-migrants alike were closely interconnected to each other by manifold networks. This kind of interconnectedness proved to be amazingly persistent and did not lose its function even decades after the migration processes themselves had come to an end due to economic or political caesurae. In order to fully grasp this phenomenon, it is necessary to synthesize migration and village history, striving towards a ‘micro history of the globally connected village’.     

The Impossible Trinity: Inflation Targeting,Exchange Rate Management and Open Capital Accounts in Emerging Economies

This article contributes to the debate on macroeconomic management and capital account regulations in developing and emerging countries (DECs). It argues that the recommendation by neoclassical economists and international financial institutions (IFIs) to combine an inflation‐targeting regime with exchange rate management, whilst maintaining open capital accounts, is not only impossible but also potentially counterproductive. The article draws on extensive semi‐structured interviews with currency traders in Brazil and London to show that this is due to the particular way such a regime shapes central bank interventions in the money and foreign exchange markets and the destabilizing way these interventions interact with financial market expectations. The interview results also demonstrate that the guidelines issued by IFIs actually undermine, rather than aid, DEC central banks’ initial attempts to manage excessive exchange rate movements. These results support the long‐standing argument by heterodox economists and critical international political economists that DECs need to make the exchange rate an explicit instrument and goal of their macroeconomic policy and complement it with comprehensive capital account regulations to reduce the destabilizing impact of international capital flows. The interview results also give some concrete suggestions on how to achieve this.     

The US Dollar's Continuing Hegemony as an International Currency: A Double‐matrix Analysis

The standard framework for debating the international currency system casts doubt on the dollar's continuing hegemonic position because it raises questions regarding the ability of the US to finance its external liabilities in the face of worsening economic fundamentals. This article addresses these questions by adding to the usual matrix linking the international functions of money to two different types of agents, private and official, a second matrix linking the functions of money to two different types of commodities, material goods and services on the one hand, and financial securities on the other. Once it is understood that bonds and equities are now not only different types of funding instruments but also different types of commodities whose use value to the world's large investors is to serve as stores of value, it is possible to understand why the size of the US capital markets will long continue to bind foreign investors to the dollar because it will be some time before other capital markets will reach a comparable size.