Relations with Domestic and International Financial Markets
In recent years the financial markets of the world have become more closely linked together. Three major forces have operated to bind these markets together including the global corporation, the universality of the dollar, and the ability and ingenuity of the international banks and investment banking concerns.1The intertwining of world financial markets is reflected clearly by the manner in which markets abroad felt the effects from the severe credit restraint in the United States in 1968–9, and from the international currency crises of 1971 and 1973. The purpose of this chapter is to provide an analysis of the interplay between the domestic and international financial markets and the global operations of internationally oriented banks. Moreover, this chapter examines the role played by New York as an international financial centre; its relation to international banking activities; and the offshore investment banking operations of U.S. banks.
KeywordsDepression Manifold Europe Income Shrinkage
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