Kicking Away the Ladder. Development Strategy in Historical Perspective

88

Details on Prussia are taken from Tilly 1994; on Sweden, Chang and Kozul-Wright 1994, p. 872; on Portugal, Mata and Valerio 1984, pp. 147-8.

89

Lamoureaux 1994. However, Lamoreaux argues that, given the high degree of competition and low leverage level prevailing in the US banking industry, this practice was beneficial.

90

Munn 1981; Cottrell 1980.

91

Atack and Passel! 1994, p. 103

92

Atack and Passell 1994, p. 104.

93

Broagan 1985, p. 523.

94

Clark 1996, pp. 97-9.

95

Tilly 1994 (for Germany); Van der Wee 1987, p. 56 (for Belgium).

96

Grabel 2000, is a lucid review of this debate; Helleiner 2001, is a fascinating review of the history of this debate in the context of developing countries.

97

And indeed this is the line taken by Friedrich von Hayek, when he proposes the scrapping of central banks and argues for free competition among note-issue banks.

98

Quoted in Kindleberger 1996, p. 146. The original source is H Spencer, ‘State Tampering with Money and Banks’ in Essays: Scientific, Political, and Speculative (London: Williams & Northgate, 1891), vol. 3, p. 354.

99

For further details, see Kindleberger 1984; Cameron 1993.

100

Kindleberger 1984, p. SO; Larsson 1993, pp. 47-8; Swedish Central Bank website: http://www.riksbank.se.

101

For the Bank of England, see Kindleberger 1984, pp. 90-2, pp. 277-80; for Banque de France, see Plessis 1994; for the Nederlandische Bank, see ‘T Hart et al. 1997, 4; Jonker 1997,p. 95.

102

Perez 1997, p. 67 (for Spain); Mata and Valerio 1994, pp. 139—48 (for Portugal).

103

Dechesne 1932, p. 402.

104

Garraty and Carnes 2000, pp. 154-5,423; Atack and Passell 1994; Brogan 1985, pp. 266, 277.

105

Cochran and Miller 1942, p. 295.

106

Brogan 1985, p. 477. The most telling evidence is the story of Charles E Mitchell, head of the National City Bank and a director of the Federal Reserve Bank of New York. Mitchell, in an attempt to minimise damage on his speculative activities in the run-up to the Great Depression, successfully put pressure on the Federal Reserve Board to reverse its policy of monetary tightening announced in early 1929 (Brogan 1985, pp. 525-6).

107

Singh 1997, provides a powerful critique of this view.

108

Zysman 1983; Cox 1986; Hutton 1995; Dore 2000 provide sophisticated up-to-date discussions of this debate.

109

Banner 1998, pp. 39—40, 101-5, 109-10.