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National Policies and the International Monetary System

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International Economics

Part of the book series: Recent Economic Thought Series ((RETH,volume 11))

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Abstract

While it is not uncommon to characterize the international monetary experience from the mid-1960s to the mid-1980s as that of a system undergoing shocks which have had to be accommodated, the experience comes into better perspective when it is seen as a continuum involving a slippage by many countries into high inflation in the 1970s with a painful aftermath in the 1980s. In an earlier work (Murphy 1979, p. 136), I referred to inflation as the almost inescapable product of Keynesian ideas when they are fed into the forge of pressure-group politics, and this mixture was present in many countries in the late 1960s and the 1970s. Then, beginning about 1978 and carrying into the 1980s, profound political changes brought disinflation to many (but not all) countries. In a number of countries the reaction to inflation was a sociopolitical response that included a rebirth of respect for competitive markets and for decentralized decision making. These extensive economic and political changes have dominated the experiences of the recent past, and they set the stage for opportunities ahead.

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Authors
  1. J. Carter Murphy
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Editors and Affiliations

  1. University of Illinois, Chicago, USA

    Lawrence H. Officer

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© 1987 Kluwer Academic Publishers, Boston

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Carter Murphy, J. (1987). National Policies and the International Monetary System. In: Officer, L.H. (eds) International Economics. Recent Economic Thought Series, vol 11. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-3263-0_4

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  • DOI: https://doi.org/10.1007/978-94-009-3263-0_4

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-010-7964-8

  • Online ISBN: 978-94-009-3263-0

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