By Fritz Machlup (auth.)
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Additional info for A History of Thought on Economic Integration
Yet I have a strong suspicion that the actions recommended to or adopted by several governments in the name of monetary integration and fiscal harmonisation are counterproductive. Let me state my reasons for saying so. MONETARY AND FISCAL INTEGRATION The most urgent prescription which the money-doctors (or money-quacks) gave to governments desiring monetary integration was fixed exchange rates with the smallest possible bands for permissible oscillations around parities. This prescription would be fine if the countries were prepared to give up their autonomy over credit policy.
The two chapters of Part Two, however, cannot be called historical in character -unless one is prepared to have history without names and without dates. Time, place, and people are part and parcel of historical research, and none of these will be found in Part Two. Nevertheless, a strong claim can be made for its relevance in a history of thought, for it is devoted to an analysis of the idea the history of which will be presented in Part Three. In Chapter 3 a few brief and rather general reflections will be offered on the differences between economic thought and economic analysis, and then on the relations between economic and political thought.
15 Many of these public goods are what social scientists (economists included) have regarded as the satisfaction of non-economic, social or political objectives (of groups, communities, nations, or groups of nations). If the attainment of widely held collective objectives- such as nationalism (anticosmopolitanism), national or international egalitarianism, or the cultivation of particular artistic and literary tastes - is regarded as a public good, the most effective division of labour in producing this public good may well call for very different territorial delimitations than would be compatible with efficiency in the production of private goods and services.
A History of Thought on Economic Integration by Fritz Machlup (auth.)