Discussion of the Paper by Professor Pinto Barbosa
Professor Wallich said he found that the paper by Professor Pinto Barbosa bore on the hypothesis that a country’s system of preferences depended on its historical experiences. Portugal’s experience was one of monetary, political and economic instability. Recently, Portugal had succeeded in the sense of having a high degree of monetary and political stability, though perhaps at the expense of the rate of growth. Recently, perhaps Portugal’s policies had been too conservative because it was too bent on stable development and stable money. Germany’s preferences came from analogous historical experience. Perhaps what happened in Germany explained the present conditions in the world rather more than what happened in Portugal. Again, one had an experience of inflation and of violent dictatorship, which coloured what many Germans thought about stability and inflation.