Giovanni Farese

Giovanni FareseGiovanni Farese is Associate Professor of History of Economic Thought at the European University of Rome. He is Adjunct Professor of Economic History at LUISS Guido Carli University, Rome. He is Managing Editor of The Journal of European Economic History. He is Marshall Memorial Fellow 2017 of the German Marshall Fund of the United States. His latest paper is The culture of investment-led international development: the Chatham House circle (1939-1945) and lessons for today (forthcoming on the November 2016 issue of International Affairs, 6, 2016).

Papers Published in World Economics:

How to Reconcile Democracy, the State and the Global Market

Nation states were the vehicle for market capitalism, but global market capitalism has freed itself from regulations imposed by nation states. A trilemma between democracy, the state and the market became an irreconcilable one, and gathered momentum. The post-War period has shown it is impossible to have a fixed exchange rate, free capital movement and sovereign monetary policy all working at the same time. To reconcile the trilemma, development banks need to cooperate or merge to finance transcontinental infrastructure projects to push up growth and employment and the World Trade Organization (WTO) should include a norm whereby countries joining it adopt the same exchange-rate regime (be it fixed or flexible). Without a deep reform in the global architecture, disequilibria, both economic and social, will continue to worsen, and conflicts will arise – only another ‘great depression’ will shock the international economy to induce the necessary international cooperation and joint action.

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