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Three Pillars of Conventional Wisdom

  • Rod Cross
  • Douglas Strachan

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.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120036637
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Article provided by Taylor & Francis Journals in its journal Review of Political Economy.

Volume (Year): 13 (2001)
Issue (Month): 2 ()
Pages: 181-200

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Handle: RePEc:taf:revpoe:v:13:y:2001:i:2:p:181-200
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  16. Martin Feldstein, 1996. "The Costs and Benefits of Going from Low Inflation to Price Stability," NBER Working Papers 5469, National Bureau of Economic Research, Inc.
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