Contents

Chapters in this book

1. Frontmatter i
2. Council on Foreign Relations v
3. Contents ix
4. Acknowledgments xi
5. Prologue. Playing Monopoly with the Devil xiii
6. Introduction xxv
7. Part One. The Unfulfilled Promises of Local Currencies
8. Chapter 1. The Standard of Value and the Reversed Liquidity Trap 3
9. Chapter 2. The Unfulfilled Promises in the Financial System 16
10. Chapter 3. The Unfulfilled Promises in Trade and Growth 53
11. Chapter 4. The Costs of Stability 82
12. Chapter 5. Missing Financial Globalization 107
13. Part Two. The Reversed Liquidity Trap and Financial Crises
14. Chapter 6. The Financial Risks of Monetary Regimes 121
15. Chapter 7. The Currency Origins of Financial Crises 136
16. Chapter 8. The Myth of the Lender of Last Resort 167
17. Chapter 9. The Solution of Crises and the Aftermath 179
18. Chapter 10. The Counterfactuals 189
19. Part Three. The Optimal Currency Area and the Choice of Currency
20. Chapter 11. The Conventional Optimal Currency Area Theory 197
21. Chapter 12. Toward a Redefinition of an Optimal Currency Area 220
22. Chapter 13. Conclusions 232
23. Epilogue. Werner von Bankrupt on the Art of Buying Countries with a Buck-Fifty 235
24. Notes 245
25. Index 249