Barry Eichengreen, George C. Pardee & Helen N. Pardee Chair at UC Berkeley, is a globally renowned economist and political scientist whose career spans decades of impactful research and teaching. A former Senior Policy Advisor at the International Monetary Fund and convener of the Bellagio Group, he has authored numerous influential works, including The Populist Temptation and How Global Currencies Work. A fellow of the American Academy of Arts and Sciences, Eichengreen’s research explores the evolution of the international monetary system, with a focus on global currency dominance and reserve composition. In this interview, he discusses his collaborations with French academics Marc Flandreau and Eric Monnet, facilitated by the France Berkeley Fund (FBF), which have yielded insights into the factors shaping global financial systems and reshaped historical perspectives on currency transitions.
Could you share an overview of your current research focus?
Barry Eichengreen: My current research examines the historical and evolving dynamics of the international monetary system. I’m particularly interested in global currency use and the composition of international reserves. This includes studying why central banks choose to hold reserves in forms like bank deposits or bonds.
Your collaboration with Professor Marc Flandreau resulted in the book “How Global Currencies Work.” Could you elaborate on the key findings of that research?
BE: Certainly. Together with Marc Flandreau, a professor at Sciences Po in Paris, we explored the dominance of the U.S. dollar and the British pound during the 1920s and 1930s. Our findings revealed that the dollar overtook the pound as the leading global currency earlier than previously believed. This reshaped historical perspectives on the transition of monetary dominance.
You’ve also worked with Professor Eric Monnet. What did this collaboration focus on?
BE: My work with Eric Monnet, who is a professor at École des hautes études en sciences sociales (EHESS) in France, has centered on the composition of international reserves. Specifically, we’ve investigated the factors influencing central banks’ decisions about reserve composition.
How did your collaborations with Professors Flandreau and Monnet come about?
BE: I was acquainted with both Flandreau and Monnet before these respective projects began. However, the France Berkeley Fund (FBF) played a crucial role in enabling our collaborations. The FBF provided funding that allowed both of them, as members of French partner institutions, to spend time at Berkeley. It also supported research assistants who were integral to our data analysis efforts.
Indeed, the FBF was instrumental. For instance, in my most recent research, the funding supported a graduate student in Paris who contributed to our work. These collaborations wouldn’t have been possible without the resources provided by the FBF.
Are there any future publications stemming from your latest research?
BE: Yes, I have some articles in mind that will explore various aspects of this latest project. These will delve deeper into the findings and their implications for understanding the international monetary system.
What do you find most rewarding about these international collaborations?
BE: The exchange of ideas and expertise is invaluable. Collaborating with researchers like Marc Flandreau and Eric Monnet brings unique perspectives and strengthens the research. The support from programs like the France Berkeley Fund enriches this process further by enabling cross-border academic exchange.
We want to thank Professor Barry Eichengreen for his time and insights.