POLI 243 Chapter Notes - Chapter 12: Phillips Curve
17 Apr 2017
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Chap 12: a society-entered approach to monetary and exchange-rate policies. Govs have a trade off between exchange rate stability and domestic autonomy => must have. Oating rate if a gov wants to manage the domestic economy. Electoral systems changed a lot in the rst half of the 20th century, which changed attitudes toward economic management. Rise of left-wing parties and their widespread support forced policy makers to respond to demands, therefore leading to a focus on employment, and abandoning the gold std. Dev of keynes theory over the traditional neoclassical. Keynes advocated for gov spending to solve unemployment probs in britain. This therefore explains the shift to govs preferring to manage their domestic economy and having oating exchange rates than the other way around. Society based models of monetary and exchange-rate politics. Based on 3 models: sectoral, institutional and partisan.
