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.

A MEMETIC/PARTICIPATORY APPROACH FOR CHANGING SOCIAL BEHAVIORS AND PROMOTING ENVIRONMENTAL STEWARDSHIP IN JALISCO, MEXICO

This dissertation addressed the issue of sustainable development at the level of individual behaviors. Environmental perceptions were obtained from people living around the biosphere reserve Chamela-Cuixmala in Jalisco, Mexico. Several environmental issues were identified by the people, such as garbage and grey water on the streets, burning plastics, and the lack of usage of recreational areas. All these issues could be addressed with a change in behavior by the villagers. Familiarization activities were conducted to gain people's trust in order to conduct a community forum. These activities included giving talks to school children and organizing workshops. Four different methodologies were generated using memetics and participation to test which would ameliorate those environmental issues identified by the people through a change in behavior. The methodologies were 1) Memes; 2) Participation and Memes; 3) Participation; 4) Neither Participation nor Memes. A meme is an idea expressed within a linguistic structure or architecture that provides it with self-disseminating and self-protecting characteristics within and among the minds of individuals congruent with their values, beliefs and filters. Four villages were chosen as the treatments, and one as the control, for a total of five experimental villages. A different behavior was addressed in each treatment village (garbage, grey-water, burning plastics, recreation.) A nonequivalent control-group design was established. A pretest was conducted in all five villages; the methodologies were tested in the four treatment villages; a posttest was conducted on the five villages. The pretest and posttest consisted in measuring sensory specific indicators which are manifestations of behavior that can either be seen, smelled, touched, heard or tasted. Statistically significant differences in behavior from the control were found for two of the methodologies 1) Memes (p=0.0403) and 2) Participation and Memes (p=0.0064). For the methodologies of 3) Participation alone and 4) Neither, the differences were not significant (p=0.8827, p=0.5627 respectively). When using memes, people's behavior improved when compared to the control. Participation alone did not generate a significant difference. Participation aided in the generation of the memes. Memetics is a tool that can be used to establish a linkage between human behavior and ecological health.