This book examines the origins of modern corporate finance systems during the rapid industrialization period leading up to World War I; leading to three sets of conclusions. First, modern financial systems are rooted in the past, are idiosyncratic to specific countries and are highly path-dependent. Therefore, to understand current financial institutions, we must take stock of the forces at play in the near and distant past. Second, financial institutions and markets do not create economic growth without significant first steps in industrial development and supporting institutions. Third, and most important from the modern policy standpoint, there is no 'one-size-fits-all' solution to financial system design and industrial development. Having specific types of financial institutions is far less important than developing a strong, stable and legally protected financial system with a rich diversity of institutions and vibrant markets that can adapt to changing needs.

‘In the wake of the global credit crisis, what to do about financial markets is the question de jour. Caroline Fohlin shows that their operation and impact cannot be adequately understood without placing them in their historical context. Her rich analysis provides much needed perspective for scholars and policy makers alike.’

Barry Eichengreen - University of California, Berkeley

‘A debate about whether to restrict what banks can do rages in the wake of the recent financial crisis. In this volume, Fohlin provides a valuable long-term historical perspective to inform this debate by analyzing the evolution and consequences of different banking structures for economic development.’

Randall S. Kroszner - Booth School of Business, University of Chicago

‘When an academic discipline is in turmoil, as economics now is, focusing on the big questions often helps. The biggest question in economics is ‘why are some nations rich and others poor?’ In Mobilizing Money, Caroline Fohlin, a rising star in economic history, reminds us that the purpose of banking systems is to make countries, not just bankers, rich. This volume comprehensively and perceptively investigates the many different ways banks were regulated and run in different countries and in different historical periods, and how well they fulfilled their purpose. Hopefully, those charged with reregulating banks in the wake of the 2008 crisis will absorb its many lessons and insights.’

Randall Morck - University of Alberta

‘Mobilizing Money compares and contrasts the diverse ways in which banks and capital markets financed large-scale industrialization a century ago in Europe, America, and Japan. National financial systems differed, but economic growth outcomes were similar. Fohlin's findings can inform our current search for more perfect financial arrangements across the globe.’

Richard Sylla - Stern School of Business, New York University

'… provocative and stimulating … In Mobilizing Money, Fohlin contributes powerfully to an important moment in rethinking the history of financial systems.'

Mark Loeffler Source: The Journal of Modern History