From Bretton Woods to the Float
- 123 Downloads
The following four quotations, from a range of political and analytical perspectives, all present what has become part of the common sense of political-economic history: that the transition from the Bretton Woods regime to a world of flexible or floating exchange rates imposed the discipline of the global economy on governments. This idea — that international constraint was a novelty of the post-Bretton Woods period — is contradicted by the argument stated in Chapter 2: that Australian macroeconomic policymakers were motivated to prioritise disinflation in the 1950s by the demands of ‘external balance’. Furthermore, I showed there that many economists of the 1950s and 1960s saw a flexible, if not floating, exchange rate as a way out of this constraint — an extra policy instrument and another degree of freedom:
KeywordsExchange Rate Foreign Direct Investment Monetary Policy Central Bank Money Supply
Unable to display preview. Download preview PDF.