Introduction: Capital Wars

  • Michael J. Howell


Capital wars sit alongside trade wars and technology wars as the means for exercising power in the modern World economy. This money power can be expressed through the concept of Global Liquidity, a US$130 trillion pool of fast-moving funds. Its origins go back to research initiated by the US investment bank Salomon Brothers in the 1980s. The effects of Global Liquidity are transmitted through cross-border capital flows. An escalation in the size of these flows often leads to financial crises, notably in Emerging Markets. China herself is too reliant on US dollar flows, and, controversially, the coming decades will likely see the internationalisation of the Yuan.


Global Liquidity Global Financial Crisis Salomon Brothers China Capital wars 


  1. Rey, Hélène. 2015. IMF Mundell Fleming Lecture.Google Scholar

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© The Author(s) 2020

Authors and Affiliations

  • Michael J. Howell
    • 1
  1. 1.CrossBorder Capital Ltd.LondonUK

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