Why is Economic History Important?

I'm passionate about economic history. I believe that if we want to understand today's world and economy, we need to know the evolution and trajectory of the economy. In addition, our economic past provides us with useful policy lessons for our economic present and future. Finally, economic history has an intrinsic value in and of itself - I'm constantly fascinated about how our ancestors approached economic issues and solved complex economic contracting issues.

My passion for economic history is one of the reasons that I founded the Queen's University Centre for Economic History (QUCEH), which has in turn attracted amazing young academics to Queen's University Belfast. At QUCEH, we are continually thinking of ways of demonstrating the usefulness of economic history to wider society. This week two things demonstrated our commitment to this cause. First, QUCEH entered the Twitterverse - please follow us at @QUCEHBelfast. Second, we discovered that my colleague Graham Brownlow's work on DeLorean was cited extensively in a Wall Street Journal article - click here.

Image result for delorean graham brownlow

The Failure of Herstatt Bank

As an undergraduate, I was taught about the failure of Herstatt Bank in 1974 and Herstatt risk. This bank was only the 35th largest bank in Germany at the time so why would anyone be interested in studying its failure? Herstatt failed because of its involvement in risky foreign exchange business. When it closed its doors on 26 June 1974, counterparty banks (mainly in New York) had not received dollars due to them because of time-zone differences - this is known as settlement risk. The cross-jurisdictional implications of its failure resulted in the Bank for International Settlements setting up the Basel Committee on Banking Supervision and Herstatt's failure was a key reason for the establishment of real-time gross settlements systems, which ensures that payments between two banks are executed in real time. The Bank of England's Ben Norman has an interesting post on Herstatt over at the Bank's new blog ( Bank Underground ). As well as giving an excellent overview of

Boom and Bust: A Global History of Financial Bubbles

Boom and Bust: A Global History of Financial Bubbles, co-authored with my colleague Will Quinn , is forthcoming in August. It is published by Cambridge University Press and is available for pre-order at Amazon , Barnes and Noble , Waterstones and Cambridge University Press .

The Great Depression

Marginal Revolution University has a great video on the Great Depression.

Finance: Past, Present and Future

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