Friedman argued flexible exchange rates were essential for free multilateral trade

Evidence

The 1953 book that contained Friedman’s essay on “The Methodology of Positive Economics” also contained a chapter titled “The Case for Flexible Exchange Rates.” In it, Friedman argued that “current economic and political conditions” demanded “a system of flexible or floating exchange rates exchange rates freely determined in an open market primarily by private dealings and, like other market prices, varying from day to day.” Such a regime, he claimed, was “absolutely essential for … the achievement and maintenance of a free and prosperous world community engaging in unrestricted multilateral trade” (Friedman 1953b, p. 157). — Donald MacKenzie, An Engine, Not a Camera, 646

Categorization

• XREF: The same Friedman volume contains ‘The Methodology of Positive Economics’ — the founding statement of instrumentalism that performativity theory interrogates.” — connects to: Floating exchange rates preconditioned the rapid liberalization of global capital — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 448; Friedman’s floating rate doctrine was partly a polemic against Keynesian flexible rate proposals — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 430; Reformers demand flexible exchange rates and growth-oriented central bank policy

Broader Connections

• Floating exchange rates preconditioned the rapid liberalization of global capital #expands (0.85) — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 448
• Friedman’s floating rate doctrine was partly a polemic against Keynesian flexible rate proposals #expands (0.72) — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 430
• Reformers demand flexible exchange rates and growth-oriented central bank policy #expands (0.72)