Competition in the financial markets of New York and London since 1944
- The post-war golden age of New York
- American hegemony and domination of Wall Street
- London: behind New York, in spite of significant assets
- The rebirth of the City
- The Eurodollar or early return from London
- Despite the progress in London, New York maintained its lead
- Deregulation, globalization, and innovation: the Competition between two major players
- A switch in context
- London and New York dominated global finance
In the global economy, international financial markets play a major role, and provide substantial benefits to the economy of their countries. They are a challenge both nationally and globally, and many economists and historians have sought to create hierarchies for these places. Above all, a hierarchy should be able to define an international financial center. It can be considered as "the aggregate of a number of financial services in a given urban space." It is, simply, "the place where the actors coordinate financial transactions." The difficulty of accurately prioritizing these places comes from the multitude of classification criteria, and it is necessary to list a few as examples.
Some criteria of classification are:
- The number of foreign banks;
- (The relative amount of bank deposits by non-residents);
- The size of the major financial institutions;
- The development of capital markets;
- The number of employees in the financial sector.
This non-exhaustive list of criteria helps us get an idea of the importance of a global financial center. However, the domination of a place or the lack of it can only be understood "in the economic, political, social and cultural development of an era." Before 1914 and to a lesser extent after the war, the dominance of London was complete, World War II changed the hierarchy, and in 1944 New York emerged as the dominant entity.
What are the changes in the ranking of the two largest financial centers? What can explain the financial domination of one over the others? Why are London and New York dominant?
Tags: International financial markets, international financial centre, capital market, financial sector, investment banks
[...] Despite the devaluation of the pound in 1967 which was interpreted as a sign of decadence at the time, the return of the City as a power in the financial world was in no doubt Despite the progress in London, New York maintained its lead While London found an important place in the world order, New York did not lose its lead. This is explained by the fact that New York was ranked first due to its national activities and the power of its economy. [...]
[...] However, New York remains the financial center of the world, and the most influential among the two, in that it symbolizes America's economic superpower. Bibliography - Macroeconomics and business: An interactive Approach, by Nadia Tempini Macdonald - Sassen, Saskia. The global city. New York, London, Tokyo: Princeton University Press, Princeton - Saskia Sassen, Global financial centers - Foreign Affairs - foreignaffairs.org - Xiying Ivy Zhang, Economic Consequences of the Sarbanes-Oxley Act of 2002, University of Rochester, February 2005. - Zukin, S. [...]