The International Monetary System: A Time of Turbulence

By Jacob S. Dreyer; American Enterprise Institute for Public Policy Research | Go to book overview

Summary of the Discussion

Given a history of controversy over the "locomotive" and "convoy" proposals for coordinated economic expansion and, in general, over advantages and disadvantages of establishing a permanent institutional framework for coordination of national economic policies, the extent of general agreement among the participants of the conference on a number of major issues was somewhat surprising. Still, some participants, most notably Robert Solomon, maintained that closer coordination of economic policies in 1972-1973 could have prevented the worldwide boom that then developed and that led to an explosion in commodity prices, contributed to the oil price boosts of 1973-1974, and ultimately resulted in a painful global slump. Even this premise was challenged, however. Helen Junz held that the explosive economic growth of 1972- 1973 was, at least partially, due to excessive consultations and implicit coordination of policies among nations. Every government underestimated at that time the strength of its own economy and, consequently, unintentionally misinformed its partners about the true conditions. Thus, errors of judgment became compounded, and every government continued to pursue highly expansionary policies on the assumption that increments to the global growth of demand for resources due to such policies would not be excessive. Thomas Willett pointed out in this connection that international coordination of macroeconomic policies would be more defensible if, indeed, governments had a superior forecasting ability. He claimed, however, that this ability is, if anything, rather inferior because of the inherent bias of politicians toward overoptimism. Moreover, Willett contended that because coordination is likely to be based on governments' discretion, as distinct from predetermined rules, political considerations are certain to influence the outcome, not necessarily in a desirable manner.

Rainer Masera addressed the issue of structural differences among countries and of how they impinge on a coordination process. He pointed out that not only are certain prices sticky and others flexible but that the degree of their stickiness is very different among countries. After all, institutional settings for determination of wages are different

-520-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The International Monetary System: A Time of Turbulence
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 523

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.