The essential conditions for international economic stability
The third quarter of the 20th century has given us what is probably the greatest growth of real income the world has ever seen in a like period. Nevertheless, there has been one major problem in many countries: the dilemma of an unacceptable and apparently accelerating rate of price increase in the...
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2014-01-01
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| Series: | PSL Quarterly Review |
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| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/11476 |
| Summary: | The third quarter of the 20th century has given us what is probably the greatest growth of real income the world has ever seen in a like period. Nevertheless, there has been one major problem in many countries: the dilemma of an unacceptable and apparently accelerating rate of price increase in the face of an uncomfortable level of unemployment. This dilemma underlies both the poor performance of the Bretton Woods system in recent years and the sharp escalation of the trade war. In this context, the present work considers the direct and indirect effects that one nation’s actions are likely to have on other nations. The author proposes a model to explain both the strength and the persistence of inflationary pressures throughout the world and the difficulties major nations face in reconciling their views on international monetary and trade arrangements.
JEL: E31, E24, E42, F33
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| ISSN: | 2037-3635 2037-3643 |