Democracy Tempered by Inflation
We saw in the last chapter that the system of stable exchanges is now subject to much more criticism than there had been under the gold standard. The main reason for the growing pressure in favour of more flexible exchange rates lies in the degeneration of democracy into demagogy. In my book The Control of the Purse: Progress and Decline of Parliament’s Financial Control, I dealt with eighteenth-century political corruption under a chapter heading of ‘Democracy Tempered by Corruption’. I tried to indicate the extent to which, and the ways in which, democracy, which had emerged victorious in Britain as a result of the bloodless revolution of 1688, was debased through the wholesale buying of votes at elections by politicians and political parties, and through the buying of politicians’ votes in Parliament by the Governments of the day.
KeywordsFull Employment Flexible Exchange Rate Foreign Assistance Bretton Wood System Free Gift
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