A History of Thought on Economic Integration by Fritz Machlup (auth.) PDF

By Fritz Machlup (auth.)

ISBN-10: 1349031712

ISBN-13: 9781349031719

ISBN-10: 1349031739

ISBN-13: 9781349031733

ISBN-10: 1381381391

ISBN-13: 9781381381391

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Extra resources for A History of Thought on Economic Integration

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If a group of countries is determined to give the strongest possible support to economic integration for the region, the member countries will have to abolish their independent national central banks and adopt a uniform currency, issued by a Community Central Bank. If they are not prepared to do so without a lengthy transition period, they can speed up the process toward a uniform currency by adopting a parallel standard, with both national and regional (international) currencies circulating side by side, not linked by fixed exchange rates, and with no restrictions on the use of the regional (or international) currency in payments, contracts, and settlements, foreign or domestic.

Other economists, however, were convinced that closer political relations and, eventually, peace among the nations, could be achieved only by means of economic co-operation and co-ordination ahead of political unification. For example, Vilfredo Pareto, speaking at a Peace Congress in Rome, in 1889, saw customs unions and other international economic arrangements as means to better political relations and eventual pacification. 2 Similar statements were made in 1900 at a Political Science Congress on 'Les Etats-Unis d'Europe'.

The concept makes sense for any The Meaning of the Term and its Scope 29 and all combinations of territories, even if we are still far from knowing how to measure it. ECONOMIC INDEPENDENCE AND THE FEAR OF FOREIGN BLACKMAIL A particular motive for extension of an integrated area merits brief attention: the desire to have an outside source of supply of a 'strategic' produce or material incorporated into the area and thus to achieve 'independence'. The meaning of strategic is perhaps obvious: a shortage or lack of the good in question would starve or strangle the economy.

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A History of Thought on Economic Integration by Fritz Machlup (auth.)


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