[lbo-talk] Michal Kalecki

Mike Beggs mikejbeggs at gmail.com
Mon Apr 5 22:05:06 PDT 2010


On Tue, Apr 6, 2010 at 2:39 PM, Mike Beggs <mikejbeggs at gmail.com> wrote:


>Devaluation was prevented by fears of an
> inflationary spiral and the political power of farmers – the Country
> Party being an essential part of the conservative Coalition
> government.

Oops, I should have said that the farmers stood in the way of revaluation in the face of the wool boom, not devaluation after it. It was largely fears of an inflationary spiral that prevented devaluation later in the decade - since higher import prices would feed into money-wage growth and hinder a 'real' devaluation, and under BW, it would be difficult to get away with more than a single currency shift.

Mike



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