International Coordination of Financial and Economic Policy: Gustav Cassel’s Theoretical Contribution
Gustav Cassel (1866—1945) developed a number of original ideas in the field of international finance, which may prove to be relevant today. These ideas, however, were largely forgotten or remained unnoticed in the second half of the 20th century. To a large extent this is due to the fact that Cassel’s theoretical framework was fragmented, while one of the key elements of his argumentation — the purchasing power parity concept — was taken out of the context and misinterpreted. The paper’s aim is to restore and demonstrate Cassel’s vision of the goals and significance of the international coordination of financial and economic policy as an inherently normative perspective.
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