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Portrait of the Economist as a Young Man: Raúl Prebisch’s evolving views on the business cycle and money, 1919-1949

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  • Esteban Pérez Caldentey
  • Matías Vernengo

Abstract

This paper analyzes Raúl Prebisch’s less familiar contributions to economic theory, related to the business cycle, and heavily informed by the Argentinean experience. His views of the cycle emphasize the common nature of the cycle in the center and the periphery as one unified phenomenon. While his rejection of orthodoxy is less than complete, some elements of what would become a more Keynesian position are developed. In particular, a preoccupation with the management of the balance of payments and the need for capital controls as a macroeconomic management tool, considerably before Keynes and White’s plans led to the Bretton Woods agreement. In the process it is clear that Prebisch developed several ideas that are still relevant to understand cyclical fluctuations in the periphery, and became more concerned with the capacity of taking advantage of cyclical booms to maintain sustained economic growth.

Suggested Citation

  • Esteban Pérez Caldentey & Matías Vernengo, 2011. "Portrait of the Economist as a Young Man: Raúl PrebischÂ’s evolving views on the business cycle and money, 1919-1949," Working Paper Series, Department of Economics, University of Utah 2011_13, University of Utah, Department of Economics.
    • Handle: RePEc:uta:papers:2011_13
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    File URL: http://economics.utah.edu/research/publications/2011_13.pdf
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    References listed on IDEAS

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    1. Pedro Tedde & Francisco Comín & Carles Sudrià Triay & Rafael Anes Álvarez & Pablo Martín Aceña & Carlos Marichal & Leonor Ludlow & Mario Cerutti, 1994. "La formación de los bancos centrales en España y América Latina (Siglos XIX y XX). Vol I: España y México," Estudios de Historia Económica, Banco de España, number 29, November.
    2. Esteban Pérez-Caldentey & Matías Vernengo, 2007. "A Tale of Two Monetary Reforms: Argentinean Convertibility in Historical Perspective," Working Paper Series, Department of Economics, University of Utah 2007_01, University of Utah, Department of Economics.
    3. Robert Z. Aliber & Charles P. Kindleberger & Robert N. McCauley, 2023. "Manias, Panics, and Crashes," Springer Books, Springer, edition 8, number 978-3-031-16008-0, January.
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    Cited by:

    1. Kevin Gallagher, 2012. "The Myth of Financial Protectionism: The New (and old) Economics of Capital Controls," Working Papers wp278, Political Economy Research Institute, University of Massachusetts at Amherst.
    2. Esteban Pérez Caldentey & Matías Vernengo, 2016. "Reading Keynes in Buenos Aires: Prebisch and the Dynamics of Capitalism," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 40(6), pages 1725-1741.

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    JEL classification:

    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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