An Exorbitant Privilege in the First Age of International Financial Integration

The exorbitant privilege literature analyzes the positive differential returns on net foreign assets enjoyed by the United States in the last quarter of the twentieth century as the issuer of the global reserve currency. In the first age of international financial integration (1870-1914), the global reserve currency of the period was the British pound sterling. Whether the United Kingdom enjoyed a similar privilege is analyzed with a new dataset, encompassing microdata on railroad and government financial securities. The use of microdata avoids the flaws that have plagued the US studies, particularly the use of incompatible aggregate variables. New measures of Britain’s net external position provide estimates on capital gains and dividend yields. As the issuer of the global reserve currency, Britain received average revenues of 13.4% of GDP from its international investment position. The country satisfied the necessary condition for the existence of an exorbitant privilege. Nonetheless, Britain’s case is slightly different from the American one. British external assets received higher returns than were paid on external liabilities for each class, but British invested mostly in securities with low profile of risk. The low return on its net external position meant that, for most of the time, Britain would not receive positive revenues from the rest of the world if it were a net debtor country, but this pattern changed after 1900. The finding supports the claim that, at least partially, exorbitant privilege is a general characteristic of the issuer of the global reserve currency and not unique to the late twentieth century US.

THE PERFORMER’S INFLUENCE ON FRANCO-BELGIAN COMPOSITIONS FROM 1870 TO 1930

The turn of the 20th century marked an ascendancy of the Franco-Belgian school of composers. French composers were inspired by the great German composers of the Romantic era, and they created their own defined national style that emerged toward the end of the 19th century. The Franco-Belgian composers’ special emphasis on tone, timbre and color encouraged a more individual, personally interpretative approach. These devices underscore the importance and influence a performer can have on the outcome of a piece. I researched the relationship between composers and violinists at a time when the Franco-Belgian style developed and flourished. The Franco-Belgian school of violin playing emerged from the Paris and Brussels conservatories as well as the symbiotic relationship between the performers and composers. Three recitals in collaboration with pianist David Ballena, which comprise this dissertation project, were performed at the University of Maryland. Each recital featured music for violin and piano from 1870 through 1930. The repertoire was chosen to reflect a performer’s influence on a composer. I examined specific composer/performer relationships that helped shape the birth of a newly defined “French” style of playing. My research focused on the stylistic interactions composers, such as César Franck, his disciple Guillaume Lekeu had with the leading prominent Belgian violinist Eugène Ysaye and between Maurice Ravel and the Hungarian violinist Jelly d’Aranyi. I also looked into the personal relationship between friends who inspired each other: Gabriel Fauré and Paul Viardot, Edouard Lalo and Pablo de Sarasate, Claude Debussy and Arthur Hartmann, and the young Lili Boulanger and Yvonne Astruc. Furthermore, I looked into the unfulfilled love between Maurice Ravel and Hélène Jourdan-Morhange, as well as the marriage of Olivier Messiaen with Claire Delbos, both relationships resulting in masterpieces for violin that have remained a part of the standard violin repertoire. My research led me to understand what type of violin playing each composer had in mind while composing, all of which led me to understand the importance a performer has in preserving national styles. The recitals were recorded on compact discs and archived within the Digital Repository at the University of Maryland (DRUM).