Real-world inflation events converted MPS economists to floating rates

Evidence

Nonetheless, ever more MPS economists converted to floating exchange rates, partly convinced by the arguments of their peers, partly by real world events such as rising inflation in West Germany and US balance of payments problems. Among these converts was Ludwig A. Hahn, a West German economist, stock trader, and banker, who used his private financial success to gain authority in monetary debates and introduced the argument of “imported inflation” due to rigid exchange rates in hard currency countries such as the Federal Republic. — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 432

Categorization

• DEFINE: The ‘imported inflation’ argument — rigid hard-currency exchange rates transmit external inflation — is a key monetarist doctrinal device worth precise recall.
• XREF: connects to: Floating exchange rates triumphed despite starting as a minority view even among neoliberals — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 445; Austrian school economists converted from gold standard to floating rates — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 431; Floating exchange rates preconditioned the rapid liberalization of global capital — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 448 (+2 more)

Broader Connections

• Gold-standard advocates lost the internal monetary debate to floating-rate advocates #corroborates (0.80) — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 411
• Floating exchange rates preconditioned the rapid liberalization of global capital #complicates (0.78) — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 448
• Fixed and floating exchange rates operate by opposite logics #expands (0.75) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 121