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Three Pillars of Conventional Wisdom

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  • Rod Cross
  • Douglas Strachan

Abstract

This paper considers three pillars of contemporary economic wisdom that form part of the so-called 'Washington consensus': that free markets work best; that price stability is a good thing; and that deregulated financial markets work best. We argue that these propositions apply in certain circumstances, but do not have general validity. After discussing the circumstances in which these propositions do not hold we suggest how the conventional policy wisdom should be revised.

Suggested Citation

  • Rod Cross & Douglas Strachan, 2001. "Three Pillars of Conventional Wisdom," Review of Political Economy, Taylor & Francis Journals, vol. 13(2), pages 181-200.
    • Handle: RePEc:taf:revpoe:v:13:y:2001:i:2:p:181-200
    DOI: 10.1080/09538250120036637
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    2. Marangos, John, 2009. "What happened to the Washington Consensus? The evolution of international development policy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(1), pages 197-208, January.
    3. Mozammel Huq, 2006. "Economic Development in a Changing Globalised Economy: The Case of Developing Countries," Working Papers id:757, eSocialSciences.
    4. Mozammel Huq & Michael Tribe, 2004. "Economic development in a changing globalized economy," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(7), pages 911-923.

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