The Failure of the Foreign Bondholders Protective Council Experiment, 1934–1940
This article explores the contentious U.S. State Department–Foreign Bondholders Protective Council relationship in the context of interwar foreign economic policy and bureaucratic competition. U.S. officials created the council in 1933 to represent the interests of U.S. investors in the settlement of the numerous dollar bond issues that had gone into default. The article shows why the council failed to perform as U.S. officials expected and outlines the process by which they increasingly interposed themselves in debt negotiations. In doing so, it considers the limitations of using private organizations to accomplish the objectives of public policy.
The Glass–Steagall Act in historical perspective
Implementation of Volcker's Rule requires a historical perspective on the original Glass–Steagall Act of 1933 that separated commercial banking from investment banks in the United States. Like the Dodd-Frank legislation, the Banking Act of 1933 was passed before full analysis of the financial crisis was possible. The intended consequences of Glass–Steagall made Federal deposit insurance feasible by limiting entry of new banks while preserving unit banking. The unintended consequences, however, cut off access by small- and medium-size enterprises to external finance and also reduced the capital base for investment banks. Despite these harmful effects, the American economy did recover eventually.
The Internet and the Changing Beijing-Taipei Relations: Toward Unification or Fragmentation?
Information and its technologies facilitate the exercise of what has been called “soft power,” a concept that differentiates information from the conventional dimensions of “hard power,” which is mainly associated with military force and economic influence. Soft power, according to Nye, a former Assistant Secretary of Defense of the United States, means that “A country may obtain the outcomes it wants in world politics because other countries want to follow it, admiring its values, emulating its example, aspiring to its level of prosperity and openness. In this sense it is just as important to set the agenda in world politics and attract others as it is to force them to change through the threat or use of military or economic weapons.”1