Friedman’s floating rate doctrine was partly a polemic against Keynesian flexible rate proposals

Evidence

Both sets of arguments—that the gold standard advocates relied on unrealistic assumptions and that flexible exchange rates are a viable and stable alternative—came to shape the debate in the coming decades and were repeated time and again by Friedman and other disciples of floating exchange rates. In many cases, these were combined with an insistence on domestic monetarism as the “logical” counterpart strategy that also aimed at demarcating this policy set from the Keynesian proposals for flexible rates, promoted most notably by James Meade. — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 430

Categorization

• DEFINE: Key distinction: monetarist floating rates (tied to domestic monetarism) vs. Keynesian flexible rates — a within-neoliberalism doctrinal boundary worth mapping.
• XREF: connects to: Friedman argued flexible exchange rates were essential for free multilateral trade — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 646; Friedman converted to floating rates from the gold standard position — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 429; Early neoliberals favored the gold standard and opposed floating rates — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 428 (+1 more)

Broader Connections

• Early neoliberals favored the gold standard and opposed floating rates #complicates (0.80) — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 428
• Postwar IMF Keynesianism concealed classical liberal assumptions derived from 1920s Treasury logic #expands (0.75) — Mark Blyth, Austerity, 443